Fed signals drive Britain's FTSE to 5-week closing high
* FTSE 100 up 0.6 percent
* Miners rally as Fed commitment eases growth fears
* G4S, Serco fall, UK puts pair under review
* AB Foods up on Primark boost
By Tricia Wright
LONDON, July 11 (Reuters) - Britain's top share index hit a five-week closing high on Thursday, bolstered by mining stocks, after the U.S. Federal Reserve chairman signalled a commitment to monetary stimulus for the foreseeable future.
The FTSE 100 ended up 38.45 points, or 0.6 percent, at 6,543.41, its highest close since June 4, having recouped more than half of the drop which began in late May on Bernanke's initial suggestion of diminished stimulus as early as this year.
Bernanke on Wednesday said that the overall message coming from the central bank was that "a highly accommodative policy is needed for the foreseeable future"
"It really has given markets a sign to shift higher - tapering, we don't have to worry about it for quite a while," said IG market analyst Chris Beauchamp.
"I think we're going to move higher but it might be the case that we're going to drift for a couple of days (after recent gains)," he said.
Miners were the biggest risers by some margin, dominating the FTSE 100 leaderboard, as copper prices hit a near one-month high on the back of the Fed signals.
Technical charts indicated scope for optimism on the UK benchmark, with the index holding above its 50-day moving average, now at 6,464.
"We remain bullish - the next target is 6,605," Shai Heffetz, MD of spreadbetting and CFD provider InterTrader, said.
AB Foods also managed strong gains, up 5.1 percent, driven by a strong third-quarter performance at its discount clothing chain Primark, prompting Panmure Gordon to raise its recommendation on the firm to "buy" from "hold".
Trading volume in AB Foods was robust, at more than twice its 90-day daily average.
But Serco and G4S were left nursing respective falls of 7.9 percent and 5.6 percent after Britain placed all contracts held by the outsourcing firms under review after an audit showed they charged for tagging criminals who were either dead, in prison or never tagged in the first place.
Trading volumes for the pair stood at around five and 2-1/2 times their 90-day daily averages respectively, against the FTSE 100 on 87 percent. (Reporting by Tricia Wright; editing by Ron Askew)
Trending On Reuters
We are living longer but not creating financial plans to keep pace. Advisers give tips on how to make sure you don’t outlive your money. Video