UK's FTSE recovers as Chinese data boosts miners

Thu Aug 8, 2013 6:14am EDT

* FTSE 100 up 0.3 pct after four days of losses
    * 2013 laggard Aviva rises after posting higher H1 profits
    * Schroders succumbs to profit-taking from record highs

    By Toni Vorobyova
    LONDON, Aug 8 (Reuters) - Britain's benchmark equity index
broke a four-day losing streak on Thursday as forecast-beating
trade data from China, the world's biggest metals consumer,
lifted mining stocks.
    China's exports and imports both rose more than expected in
July, in a tentative sign of economic recovery. 
    The basic materials sector added 8 points to Britain's FTSE
100, led by gains in Antofagasta and Anglo American
.
    The blue-chip index rose 0.3 percent to 6,530.68
points by 0958 GMT, testing minor technical resistance around
its 30-day average.
    "On the face of it, it's definitely a step in the right
direction (for China)... and people are reacting to it by buying
the miners," said Jonathan Roy, a broker at London Stone
Securities.
    A 1.4 percent sell-off on Wednesday brought the FTSE 100
back towards the bottom of a 60-point range it has held for four
weeks.
    Insurer Aviva was the biggest riser, up 6.2 percent
as higher first-half profits lured investors into a stock that
has lagged the market since a spring dividend cut.
 
    Fund manager Schroders slipped 5.3 percent after
reporting bigger-than-expected outflows in June, prompting
profit-taking on a stock that set record highs earlier this week
and is up 41 percent since the start of 2013. 
    Not everyone was convinced by the FTSE 100's ability to
sustain the rebound, especially after Wednesday's monetary
guidance from the Bank of England raised concerns that interest
rates may rise sooner than previously expected.
    Steve O'Hare, analyst at First 4 Trading, recommended
selling the index in front of 6,550, with a stop at 6,580 and
the first downside target at 6,485.

 (Editing by John Stonestreet)
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article