The OECD also upped its global growth forecasts, citing the ongoing success of the vaccine rollout and the US stimulus package

Stocks in London had extended gains by midday on Tuesday as the Organisation for Economic Cooperation and Development (OECD) upgraded its growth forecasts for the UK and global economy.

The FTSE 100 rose 0.9% at 6,777.77, even as sterling advanced 0.4% against the dollar to 1.3879.

The OECD said earlier that it now expects the UK economy to grow 5.1% this year and 4.7% in 2022, up from previous forecasts for 4.2% and 4.1% growth, respectively.

It also upped its global growth forecasts, citing the ongoing success of the vaccine rollout and the US stimulus package.

Activity in many sectors has picked up and adapted to pandemic restrictions over recent months, it said. Vaccine deployment, although uneven, is finally gaining momentum and government fiscal stimulus, particularly in the US, is likely to provide a major boost to economy activity.

The Organisation for Economic Cooperation and Development now believes the global economy will grow by 5.6% in 2021 and by 4% in 2022. That is a rise on its previous forecasts, made in December, for growth of 4.2% this year and 3.7% next year.

In equity markets, M&G was the top performer on the FTSE 100 as the investment manager’s full-year operating profit came in ahead of expectations.

Avast gained after saying it had agreed to sell its Family Safety Mobile Business to Smith Micro for $66m.

ITV reversed earlier losses to trade higher after it posted a decline in full-year profit and revenue due to the pandemic, as adjusted group earnings before interest, tax and amortisation beat analysts’ expectations.

Ultra Electronics rose after the defence contractor reported a jump in full-year profit and revenue as it won a number of new contracts.

On the downside, miners slumped, with BHP, Rio, Glencore, Anglo American and Antofagasta all weaker as metals prices fell.