* FTSE 100 up 0.4 pct
* Draghi comments raise expectations of more easing
* WPP, Bunzl rise after H1 results
* RSA Insurance lifted by BofA ML upgrade - traders
By Tricia Wright
LONDON, Aug 26 Britain's top shares rose on
Tuesday, boosted by comments from European Central Bank
President Mario Draghi which raised expectations of further
policy easing, while WPP and Bunzl advanced after posting
Draghi, speaking at a global central banking conference in
Jackson Hole, Wyoming, said late on Friday the bank was prepared
to respond with all its "available" tools should inflation drop
The prospect of more policy easing in Europe - and even the
possibility of quantitative easing to pump cash into the
financial system and revive inflation - saw the London stock
market, closed on Monday for a public holiday, play catch up
with an advance seen in Europe in the previous session.
The FTSE 100 was 25.21 points, or 0.4 percent,
higher at 6,800.46 points by 0806 GMT. The euro zone's blue-chip
Euro STOXX 50 index closed up by 2.2 percent on
"The FTSE is supported this morning by Draghi's Jackson Hole
speech - although low on detail. European central bank support
will be a positive for the UK market as well," said Lex van Dam,
a hedge fund manager at Hampstead Capital.
The likelihood of more gains for the UK benchmark was borne
out by upbeat technical comment on the index - up some 4 percent
from a low hit more than two weeks ago following a sell-off
triggered in June by the worries over the crisis in Ukraine.
"The broader technical picture is now implying that upward
momentum is such that further near-term gains have become a
realistic expectation," Charles Stanley technical analyst Bill
He said the fact that the index does not appear to be
particularly overbought, with its 14-day relative strength index
(RSI) at 59, implies that it could push back towards last
month's closing high, at 6,866.
WPP, the world's largest advertising group, was
among the biggest risers, up 1.6 percent, after unveiling
first-half results slightly ahead of forecasts and confirming
its full-year guidance.
Business supplies distributor Bunzl was up 1.7
percent after its first-half revenue climbed 7 percent at
constant exchange rates, helped by the impact of recent
Shares in RSA Insurance rose 2.5 percent, with
traders citing the impact of a BofA Merrill Lynch upgrade to
"buy" from "neutral".
(Reporting by Tricia Wright, additional reporting by Sudip
Kar-Gupta; Editing by Andrew Heavens)