MINERS and banks led the way on the London market yesterday, while commodity stocks drove higher on hopes for economic recovery.

Broker comments acted to soothe sentiment on the financial sector, with Royal Bank of Scotland (RBS), HSBC and Lloyds Banking Group enjoying rises.

The FTSE 100 Index closed 32 points ahead at 4436.8, paring more dramatic gains earlier in the session as Wall Street lost ground after opening.

Miners accounted for the top five risers, led by Vedanta Resources, which gained 139p to 1770p.

Meanwhile, Eurasian Natural Resources was 54.5p better at 730p after a well-received trading update in the sector and Xstrata lifted 50p to 771.5p.

The other significant moves of the session came from the banking sector after a positive assessment from JP Morgan.

RBS led the rise, up almost five per cent – or 1.8p to 37.9p – while HSBC gained 18.25p to 536p.

Lloyds Banking Group also lifted 2p to 65p, recovering ground lost after its £4bn share placing on Monday.

Retailers were also on the front foot, continuing Tuesday’s gains for the sector, and amid the positive report from Home Depot in the US.

Marks and Spencer rose 9.75p to 292.75p while Argos owner Home Retail Group lifted 7.75p to 266p and Next gained 26p to 1546p.

Thomas Cook topped the fallers board after leading the winners on Tuesday, as speculation continued following the collapse of its majority shareholder, German firm Arcandor. Shares lost 16.75p to 219p.

Among retailers outside the top flight, bikes and car parts firm Halfords lost 2p at 343.5p – despite an early rise for the shares – after it said annual profits grew, but reported its first revenue dip in more than 20 years.