Reuters
Published Sep 15, 2009 07:28AM ET
* Miners, oils rally with firmer commodity prices
* Banks gain on first anniversary of Lehman Bros collapse
* U.S. retail sales numbers awaited; UK inflation ignored
By Jon Hopkins
LONDON, Sept 15 (Reuters) - Britain's top share index was 0.2 percent higher at midday on Tuesday, lifted by a rally from miners and banks, with vague bid rumours, broker comment and the wait for U.S. retail sales data providing a focus.
By 1117 GMT the FTSE 100 <.FTSE> was 10.32 points higher at 5,029.17, ahead for a third straight session.
"(Monday's) rally towards the close from trading lows is enough to breed confidence that there is not an immediate will for prices to fall, but equities are struggling at the moment to find reasons to push on from these levels," said Josh Raymond, Market Strategist at City Index.
Miners were the biggest driver for the market's gain as
metal prices rebounded from the previous session's lows.
Fresnillo
Banks were mostly higher with Royal Bank of Scotland
British interest rate futures rallied and sterling fell after King said the central bank was looking at reducing the remuneration rate on commercial bank reserves.
Such an option, first discussed at the BoE's August press conference, would provide a disincentive for banks to hoard cash with the central bank, encouraging them to lend to the private sector.
Oil majors were mostly higher as crude prices CLc1 moved moved $69 a barrel.
BP
Oil and gas explorer Tullow Oil
Vague takeover talk also fuelled gains in International
Power
BROKER COMMENT EYED
BT Group
Rexam
U.S. blue-chip futures DJc2 pointed to a weaker start on Wall Street as investors awaited U.S. PPI and retail sales data for further evidence of a recovery across the Atlantic.
"If we see an upsurge in U.S. retail sales we could see investors return to the markets quickly and positively," said Raymond.
Investors showed little reaction to news British consumer price inflation rose 0.4 percent in August to give an annual reading of 1.6 percent. the lowest since January 2005 but above expectations for a sharper easing to 1.4 percent from 1.8 percent in July. [nLF386677]
Other data, released overnight, showed house prices in England and Wales on a rising track for the first time in more than two years, as measured by the Royal Institution of Chartered Surveyors. [ID:nLAG003751] The FTSE 100 index is up 45 percent since touching its March lows, and closed at a near-one-year high on Monday at 5,018.85. However, the FTSE is still 7.3 percent below the level it was before the collapse of Lehman Brothers a year ago. (Editing by Dan Lalor)
Written By: Reuters
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