Banks, miners pull FTSE up on recovery hopes

Thu Aug 13, 2009 7:28am EDT
 
[-] Text [+]

* FTSE 100 hits new 2009 intra-day high

* Fed comments, eurozone data underpin recovery hopes

* Miners buoyed by firmer metal prices

* Banks extend Wednesday's rally

* Insurers up; Prudential H1 pleases

By David Brett

LONDON, Aug 13 (Reuters) - Britain's top share index was 1.5 percent higher by mid-session on Thursday, led by banks and miners, as positive GDP figures in Europe underpinned comments from the U.S. Federal Reserve that the worst of the recession could be over.

By 1109 GMT, the FTSE 100 .FTSE was up 69.66 points at 4,786.42, a new intra-day peak for 2009. The index closed 45.42 points higher on Wednesday snapping a two-session losing streak.

The euro zone economy shrank less than expected in the second quarter, data showed on Thursday, adding to signs the worst of the recession could be over. [ID:nLD422556]

Earlier, both Germany and France suprised many commentators by posting a rise in their respective second quarter GDP figures. [ID:nLD74996] [ID:nLD331549]

Mining stocks dominated the FTSE 100 risers chart, underpinned by firmer metals prices on increased demand hopes.

Lonmin (LMI.L), Rio Tinto (RIO.L), Kazakhmys (KAZ.L) and Xstrata (XTA.L) put on between 4.9 and 6.6 percent.

The euro zone figures came hot on the heels of bullish noises from the Federal Reserve late on Wednesday, which said the U.S. economy was levelling out.

The Fed. left its interest rates unchanged and extended the duration, although it did not increase the size, of its programme to buy long-term government debt. [ID:nN1272730].

"It seems this upward momentum has no end in sight just yet. There was a feeling yesterday that gains were being kept on a leash as investors waited for the Fed's interpretation of the U.S. economic recovery, and now that leash seems to have been let go," said Joshua Raymond, market strategist at City Index.  Continued...

 

More News

FTSE hits 10-mth closing high as recovery hopes rise
Thursday, 13 Aug 2009 12:22pm EDT 
Europe stocks gain; banks, miners higher
Thursday, 13 Aug 2009 06:57am EDT 
European shares advance on GDP data, Fed statement
Thursday, 13 Aug 2009 04:48am EDT 
FTSE up 0.8 pct; commods, financials rally
Thursday, 13 Aug 2009 04:25am EDT 
European Factors - Shares set to open higher after Fed
Thursday, 13 Aug 2009 02:46am EDT 

Featured Broker sponsored link