* FTSE 100 up 1.9 pct after BoE statement
* Banks, oils, miners see strong gains
* EasyJet firms; update shows passenger growth
By Tricia Wright
LONDON, July 4 Britain's blue chip shares
lurched higher on Thursday, led by cyclical banking, oil and
mining stocks, after the Bank of England indicated that there
were no near-term prospects for monetary policy tightening.
The FTSE 100 was up 116.95 points, or 1.9 percent,
at 6,346.82 by 1154 GMT, bouncing back after sliding 1.2 percent
Banks, oils and miners
hoisted the index higher with gains of 1.4-2.7
percent after the BoE said that a recent rise in bond yields was
not warranted by the state of the British economy.
The BoE left interest rates and quantitative easing
unchanged at the first meeting presided by new chief Mark
Carney, but surprised markets by issuing a statement. The
European Central Bank also held rates.
"(The BoE) flagged looser monetary policy and that's good
for stock markets. But these are low volumes; I'm not really
going to read too much into it," Michael Hewson, analyst at CMC
Trading volume stood at just 33 percent of the 90-day daily
average, reflecting a reluctance by investors to get too
involved in equities ahead of Friday's keenly watched U.S. jobs
report, and with U.S. markets shut for a national holiday.
"We remain on the sidelines for FTSE trading until we see
what number comes out tomorrow," Shai Heffetz, MD of
spreadbetting and CFD provider InterTrader, said.
Low-cost carrier easyJet was the star performer with
a 3.9 percent rise after announcing a 1.9 percent increase in
passenger numbers in June.
While unrest in Egypt and a resurfacing of debt concerns in
both Greece and Portugal have unnerved investors in the past few
days, unleashing volatility into markets, fund managers remain
sanguine about the propsects for equities.
"I think today's move shows that there's still money coming
in. We're still positive on (equity) markets," Colin Mclean, SVM
Asset Management managing director, said.
"The bigger cap stocks (with an exposure to) the more mature
markets - particularly the U.S. - I think people are still
underinvested in those," he said, holding this view partly on
the back of more encouraging recent U.S. economic data.
Of UK-listed stocks with strong exposure to the United
States, McLean reckoned there is still good value in equipment
hire group Ashtead, plumbing supplies group Wolseley
and credit-checker Experian.
(Editing by Susan Fenton)