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LONDON (AFP) – London surged higher in morning trade on Tuesday with mining shares boosted by record metals prices, amid hopes of further stimulus measures for the US economy

In late morning deals, the FTSE 100 index rallied 1.02 percent to 5,829.23 points, boosted also by an upbeat trading update from retail giant Tesco.

Commodity markets rallied sharply, with both copper and gold striking record high points, while crude oil traded at the best levels for more than two years.

"The FTSE 100 powered higher ... on the back of a strong performance in the mining and retail sector," said analyst Joshua Raymond at financial spread-betting firm City Index.

"The miners are benefiting from correlated strength in commodity prices, with copper prices rallying in London hitting a record in the process, whilst crude oil prices have also edged higher."

On the London Bullion Market, gold rose to a record pinnacle at 1,428.55 dollars per ounce, dragging sister metal silver to another 30-year high.

And on the London Metal Exchange, copper for delivery in three months soared to an all-time peak 9,014 dollars a tonne.

Equities were also buoyed as traders mulled the chance of the US Federal Reserve launching a fresh round of monetary stimulus if the world's biggest economy remains stuck in the doldrums.

Fed chief Ben Bernanke said in an interview to CBS television broadcast Sunday that "it's certainly possible" that the Fed might inject into the markets more than the 600 billion dollars decided on last month.

In addition, analysts said that a promise by US President Barack Obama to extend tax cuts by two years would also bolster financial markets.

Obama, bowing to his Republican foes in their first major battle since the November election, agreed to extend tax breaks for the wealthiest Americans under a sweeping deal aimed at averting a big 2011 tax hike.

The president yielded in the deal announced late Monday, which extends tax cuts enacted under former president George W. Bush for all income brackets despite his earlier push to exclude top earners.

"Obama's extension of the Bush-era tax credits has the prospect to add some seasonal cheer but the eurozone debt issue continues to linger," said IG Markets analyst Chris Weston.

Later on Tuesday, investors will revisit those concerns, as debt-riddled Ireland unveils its latest austerity budget.

Irish finance minister Brian Lenihan will deliver a 2011 budget that will contain a combined 6.0 billion euros (8.0 billion dollars) of taxation hikes and spending cuts.

The statement will be the first in a series of budgets to implement a total fiscal correction of 15 billion euros over the next four years.

The deal with the EU and the International Monetary Fund for 67.5 billion euros in external loans and guarantees, plus 17.5 billion taken mostly from Ireland's public pension fund, has angered citizens.

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LONDON (AFP) – European stock markets surged higher Tuesday, with Frankfurt hitting a 2.5 year-high and mining shares boosted by record metals prices, amid hopes of further stimulus measures for the US economy.

In late morning deals, London's FTSE 100 index rallied 1.02 percent to 5,829.23 points, boosted also by a upbeat trading update from retail giant Tesco.

Across in Germany, Frankfurt's DAX 30 index climbed briefly above 7,000 points for the first time since June 6, 2008, while the Paris CAC 40 soared 1.83 percent to 3,817.76 points.

Commodity markets rallied sharply, with both copper and gold striking record high points, while crude oil traded at the best levels for more than two years.

"The FTSE 100 powered higher ... on the back of a strong performance in the mining and retail sector," said analyst Joshua Raymond at financial spread-betting firm City Index.

"The miners are benefitting from correlated strength in commodity prices, with copper prices rallying in London hitting a record in the process, whilst crude oil prices have also edged higher."

On the London Bullion Market, gold rose to a record pinnacle at 1,428.55 dollars per ounce, dragging sister metal silver to another 30-year high.

And on the London Metal Exchange, copper for delivery in three months soared to an all-time peak 9,014 dollars a tonne.

Equities were also buoyed as traders mulled the chance of the US Federal Reserve launching a fresh round of monetary stimulus if the world's biggest economy remains stuck in the doldrums.

Fed chief Ben Bernanke said in an interview to CBS television broadcast Sunday that "it's certainly possible" that the Fed might inject into the markets more than the 600 billion dollars decided on last month.

In addition, analysts said that a promise by US President Barack Obama to extend tax cuts by two years would also bolster financial markets.

Obama, bowing to his Republican foes in their first major battle since the November election, agreed to extend tax breaks for the wealthiest Americans under a sweeping deal aimed at averting a big 2011 tax hike.

The President yielded in the deal announced late Monday, which extends tax cuts enacted under former president George W. Bush for all income brackets despite his earlier push to exclude top earners.

"Obama's extension of the Bush-era tax credits has the prospect to add some seasonal cheer but the eurozone debt issue continues to linger," said IG Markets analyst Chris Weston.

Later on Tuesday, investors will revisit those concerns, as debt-riddled Ireland unveils its latest austerity budget.

Irish finance minister Brian Lenihan will deliver a 2011 budget that will contain a combined 6.0 billion euros (8.0 billion dollars) of taxation hikes and spending cuts.

The statement will be the first in a series of budgets to implement a total fiscal correction of 15 billion euros over the next four years.

The deal with the EU and the International Monetary Fund for 67.5 billion euros in external loans and guarantees, plus 17.5 billion taken mostly from Ireland's public pension fund, has angered citizens.

In Brussels this week, European finance ministers gathered to discuss possible new bailout plans for debt-burdened member states.

Wall Street had closed mixed on Monday as traders weighed remarks by Bernanke signaling the central bank was ready to introduce new stimulus steps if the economy fails to take off.

Asian markets mostly rose on Tuesday as dealers brushed off a report that China will hike interest rates soon, but Japanese shares sank as the yen surged against the dollar.

The greenback has fallen hard against the Japanese unit following comments by US Federal Reserve head Ben Bernanke that the bank could pump more money into the economy.

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1571: The origins of the London Metal Exchange (LME) dates back to the opening of the Royal Exchange, London, during the reign of Queen Elizabeth I, when traders in a range of products began to meet on a regular basis.

19th century:Beginning of the 19th century, there are so many traders products to the Royal Exchange it becomes impossible to do business. Individual groups of traders settled in vicinity of the town of coffee houses.

Jerusalem, coffee house becomes a favorite metalworking trade community, where "the tradition of the ring" was born. A trader with metal sell draws a circle in the sawdust on the floor and calls "Change!" to the point where those wishing to trade would be assembled around the circle and make their bids.

1869: Opening of the Suez canal reduces the delay in delivery of Tin Malaysia and Singapore to match the delay in delivery of three months for the Chile copper. This gives rise to unique system of daily trading dates up to three months before LME still exists today.

1877: Form of merchants metals in London and Mining Company move their premises first on the Lombard Court Hat shop. The London Metal Exchange was born. Membership is growing rapidly and quickly move to a purpose built Exchange Whittington Avenue. The Exchange moves to its current home in Leadenhall Street in 1994.

2000:An index based on six primary metals traded on the exchange contract is introduced. It is specifically designed to provide access of investors to contracts futures and options traded contracts on non-ferrous metals without additional costs involved.

Today: LME trades equivalent to 7.41 trillion dollars annually, and $29bn on an average business day. More than his company 95pc comes from overseas.

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Both are images of the past, ghosts industry of the now defunct far from the life of the 21st century - this is why the emergence of 33 Chilean exhilarating a hole in the ground came as a little surprise to the public this week.

As it turns out that mining do more after all, but a global industry employing trillion of 43 million people.

Modern technology may have done away with the need to pick axes and asses, but there are places that still rely on men crawling through tunnels in search of more and more scarce commodities.

For these men, it is apparently worth braving the extremely poor security conditions in exchange for a 20pc than copper average salary miner in the South American nation.

Men rescued in San José, worked in a copper mine - and the Chile is the world number one producer of base metal which saw higher prices for the months.

Euphoria at the Chile is likely to die before long, when the miners returned to their wives and ma?tresses.Mais there is still much to be happy about for mining giants.

Department of mines Chile closed mines around 300 since the accident, concerned about the risk of disasters plus.Cependant, this is unlikely to have a major impact on the output of the country.

Product Chile one-third of the world copper around 95pc this is operated by the Corporation, Codelco and BHP Billiton - are under threat of all major international stops in their operations.

Meanwhile, prices are currently at a maximum of 27 months $ 8,490 per tonne and 5MC just below the record copper reached in 2008.

Whereas the weakness of the dollar has provided a boost short-term all precious metals and base, some have increased more rapidly than others - and that includes copper.

Two largest copper producers worldwide, Codelco and Freeport-McMoRan copper and gold, warned this week supply "very tight" next year.

The reasons for this are deteriorating mining, metal of inferior quality and lack of investment in their factory.

It is not only production is declining, but demand is rising.Even today, there are in China and the London Metal Exchange low inventory levels.

Most copper goes into the construction and electrical equipment.

But demand for copper in the future of conduct will be consumers want to buy more environmentally friendly hybrid cars that use twice the amount of copper because they have an electric motor as a motor.

In addition to this, a recent report by the International Copper study demand for red metal Groupsays increase by 3 81pc this year and 4 49pc next year, but Rio Tinto mining giant believes current projects can only supports 3pc growth rates.

It has really been driving the massive rise in base metals copper and providing a boost to the mining industry as a whole.

"FTSE index mining has outperformed FTSE100 stock by 15pc 35pc increase since June, index," said Nick "Metals" Moore, an analyst at RBS products.Antofagasta led the charge with a gain of 71pc, with the company offering price copper exposure, volume growth and position solid balance sheet.

"Other copper producers also increased further to 50pc investors leverage a premium to other miners at the back of the strong fundamental underlying and extremely optimistic market copper pure-play business copper consensus".

Goldman Sachs has higher than forecast in city analysts arguing that commercial copper 35pc higher than $11 per tonne in 12 mois.Il advised customers purchase contract from December 2011 as demand will probably lead to shortages of metal next year.

And there lies the reason as industrial accidents such as test Chilean minors or the latest tragedy in China, where 11 men were trapped dead fear and 26 other people were killed in an explosion of gas, will be on offshore companies or their employees to dig deeper into the Earth for the copper - and other natural resources.

Mining can still be dirty, dangerous, technically difficult and full of risk politique.Mais if prices increase in mineral products industry, is one of the growth sectors more profitable and more critical of the planet.

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