The FTSE 100 index of Britain's leading shares ended up 1.5 per cent today, closing at its highest level since January 2001, after commodities and banks boosted the market in thin volumes.
With gold at a near one-month high as the dollar weakened and the mining sector benefiting from positive 2007 sentiment and optimism over demand from China, BHP Billiton climbed 2.9 per cent, while Lonmin (LMI.L rose 2.8 per cent and Anglo American gained 2.4 per cent.
US crude oil rose above $61 a barrel as Iran refused to comply with a United Nations resolution to stop its nuclear programme, but mild weather in the United States limited gains. BP rose 0.7 per cent and rival Royal Dutch Shell added 1.5 per cent.
Insurers were also many traders' top picks for the new year, with Standard Life adding 3.4 per cent and Royal & SunAlliance up 3.1 per cent.
The FTSE 100 index closed up 90.1 points at 6,310.9, its highest since January 2001, having hit an intra-day high of 6,312.5.