Stock markets suspect Federal Reserve has interest rate jitters

Hints that the Fed won't raise interest rates in March are proving to be good news for miners and oil producers' share prices

Did you miss Thursday's super soaraway stock market? OK, it was a local affair that wasn't obvious in the headline figures - the FTSE 100 index advanced a trifling 60 points, or 1%. But look what happened to some very large companies. Anglo American up 20%, Glencore 16% higher, BHP Billiton 11% dearer, even the Shell colossus advanced 6%. These are huge moves. What happened?

The short answer is that the market suspects the US Federal Reserve is having second thoughts about increases in interest rates. Nor is the idea wildly speculative. William Dudley, a top Fed official, said on Wednesday that monetary conditions had tightened since December's quarter-point rise and rate setters would have to take note. Further strengthening in the dollar, added Dudley, could have "significant consequences" for the health of the US economy. Translation: the Fed probably won't raise in March.