Reuters
Published Oct 14, 2009 06:48AM ET
* FTSE 100 up 1.7 percent
* Commodity stocks, banks add most points * JP Morgan results eyed
By Simon Falush
LONDON, Oct 14 (Reuters) - Britain's top share index rallied
to its highest in over a year on Wednesday, powered by gains in
commodity stocks and banks as results from Intel Corp
By 1024 GMT, the FTSE 100 <.ftse> was 1.7 percent or 86.00 points higher at 5,240.15, having touched its highest since late September 2008, after closing 1.1 percent weaker on Tuesday.
Intel's quarterly outlook and results soared past expectations on Tuesday, sending its shares 7 percent higher and lifting hopes the corporate results season would provide more evidence the global economy was recovering fast.
"Companies are beating consensus, there's a higher level of liquidity in the equity markets and the macro-economic picture is improving," said Henk Potts, strategist at Barclays Wealth.
"That's a powerful mix of positivity that's contributed to the recent gains."
Miners led the FTSE 100 index higher, tracking stronger
metal prices which were bolstered by a weaker dollar <.dxy> as
well as an improved demand outlook. Gold
Rio Tinto
Xstrata
Energy stocks were also solidly higher as crude
Data also helped lift the mood. Figures showed unemployment rose less than expected, with the number of Britons claiming jobless benefit rising at the slowest pace since May 2008. [ID:nLE600100]
JPMORGAN EYED
Investors were awaiting earnings news from JPMorgan Chase
Ahead of the results from their peers, British banks were also firmer, benefiting from a broadly improved risk appetite.
Barclays
Drugmakers moved higher too, with GlaxoSmithKline
A key U.S. Senate committee endorsed a sweeping healthcare overhaul on Tuesday, gaining the support of an influential Republican and delivering President Barack Obama a victory on his top domestic priority. [ID:nN13183672]
Among individual gainers, Burberry
Among a relatively short list of fallers, shares in
International Power
Diageo
British Land
After the JPMorgan results, due around 1100 GMT, the focus will shift to U.S. September retail sales, scheduled for release at 1230 GMT, and publication of the minutes of the Sept. 22-23 FOMC meeting, due out at 1800 GMT.
Written By: Reuters
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