The FTSE 100 started the week strongly as global stock markets rallied and commodity stocks jumped on a pledge by G7 countries to plough $600bn (£486m) into global infrastructure.

The blue-chip index rose 0.8%, or 60 points, to 7,269 as it continued its winning streak. That followed a Friday surge in US equities that saw Wall Street close last week higher, pushing Asian and European markets up this morning.

Susannah Streeter, a senior investment analyst at Hargreaves Lansdown, said the ‘burst of global enthusiasm’ has been driven by hopes that ‘central banks may finally be getting a handle on inflation’.

‘That hope is offsetting continuing concerns that the rapid withdrawal of cheap money and an intensifying cost-of-living crisis could trigger recessions,’ she said.

A new report from KPMG suggests that the Bank of England’s interest rate rises could push the UK into a ‘mild recession’ over the next year. The consultancy firm predicted the economy will grow 3.2% this year before slowing to 0.7% in 2023.

Miners were the biggest winners on the main index after the G7 group of rich countries unveiled plans to spend as much as $600bn on global infrastructure in a bid to keep pace with China’s ‘belt and road initiative’ following a meeting in Bavaria.

Streeter said it would ‘set off a spurt of spending and demand for commodities around the world’.

Anglo American (AAL) was the biggest riser, with the shares up 4.4%, or 137p, at £32.02. The stock was followed by:

• Antofagasta (ANTO) rising 4.3%, or 51p, at £12.35;
• Rio Tinto (RIO) gaining 4.2%, or 209p, at £51.88;
• And Glencore (GLEN) advancing 3.7%, or 16p, to trade at 462p.

Oil majors also made gains, with Shell (SHEL) up 1.6% at £16.53 and BP (BP) trading 1.1% higher at 390p.

The FTSE 250 added 1%, or 200 points, to trade at 19,234 and was led by Blackrock World Mining (BRWM ) investment trust, which added 4.9%, or 29p, to reach 619p on the G7 announcement. That was followed by Ferrexpo (FXPO), up 4.8% at 146p and Hochschild Mining (HOC), which added 3.9% to trade at 109p.

In investment trust news, Scottish Mortgage (SMT ) continued to benefit from the rally in US stocks, adding 3.6%, or 27p, to change hands at 760p. Blackrock Smaller Companies (BRSC ) was up 3.7% at £13.40 and Bellevue Healthcare (BBH ) was up 3.6% at 153p.

Despite an upbeat showing this morning, Neil Wilson, an analyst at Markets.com, said Friday’s strong session had ‘all the hallmarks of a bear market rally and does not inspire confidence that the bottom is finally in’.

‘Nevertheless, we could see further upside if inflation data this week points to slowing. The market would then start to find the confidence that the US Federal Reserve has got control of the situation,’ he said.