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FTSE up on U.S. figs; miners, oil, banks rise

Published 07/15/2009, 04:26 AM
Updated 07/15/2009, 04:32 AM
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* FTSE up 0.9 percent; buoyed by U.S. corp earnings on Tuesday

* Oils firm as crude rises above $60

* Miners surge as metals prices continue rally

* UK unemployment data at 0830 GMT

By David Brett

LONDON, July 15 (Reuters) - Britain's top share index rose early on Wednesday as energy stocks, miners and banks led a buoyant blue-chip market driven by strong U.S. corporate earnings the previous session.

By 0802 GMT, the FTSE 100 index was up 39.87 points, or 0.9 percent, at 4277.55, after closing 0.9 percent higher on Tuesday.

Chip maker Intel Corp continued the successful start to the U.S. second-quarter earnings season by releasing better-than-expected results, following upbeat figures delivered by Goldman Sachs.

Analysts, however, cautioned that the outlook remains difficult as the economy faces severe headwinds.

"Volumes remain pedestrian ... and because of the results in the U.S. we forget the long-term realities of the economic difficulties we're still facing in this country," said Howard Wheeldon, strategist at BGC Partners.

Oil producers added most points to the FTSE 100, as crude crept back above the $60 mark and Nigerian rebels declared a 60-day cease-fire in its local campaign targeting oil and gas installations.

Tullow Oil topped the energy stock risers, up 2.5 percent, as it announced its Jubilee field phase 1 development plan had been formally approved by the minister of energy in Ghana.

Cairn Energy, Royal Dutch Shell, BP and BG Group all gained between 0.7 and 1.3 percent.

Traders cheered higher metals prices as investment sentiment remained positive, with miners adding to Tuesday's gains.

Fresnillo, Kazakhmys, Eurasian Natural Resources, Lonmin and Xstrata rose between 2.1 and 4.7 percent.

Rio Tinto lifted 2.4 percent after the company said iron ore output in the second quarter was up 8 percent on a year earlier.

BANKS EXTEND GAINS

Banks extended Tuesday's gains as the entire sector headed north. Barclays, Lloyds Banking Group, HSBC, Standard Chartered and Royal Bank of Scotland put on between 0.3 and 1.5 percent.

Land Securities the UK real estate company moved 3.1 percent higher on news it was preparing for new buys in the battered UK commercial property market, prompting KBC Peel Hunt to raise its recommendation to "buy" from "hold".

RSA Insurance led insurers higher, up 2.7 percent, with traders citing talk of bid interest from Generali

Prudential, Aviva, Legal & General, Old Mutual gained between 0.9 and 2.7 percent.

ICAP, the world's largest interdealer broker, fell 1.9 percent, the FTSE's top faller, after going ex-dividend, but falls were tempered as it posted a 10 percent rise in revenue for the period between April and June.

BT dropped 0.7 percent as it braced itself for a battle with Britain's pensions regulator over its retirement plan, the country's biggest private sector pension scheme, which could add billions of pounds to a shortfall in savings for tens of thousands of employees and pensioners, the Financial Times said.

Traders will look to UK unemployment figures, due out at 0830 GMT, for further guidance as to where the market and the economy might be heading.

Later on Wednesday, the U.S. CPI index will keep the economic fundamentals on the agenda.

(Editing by Simon Jessop)

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