* FTSE 100 rises 0.6 pct
* Hopes of ECB policy easing and "QE" lift European stocks
* Antofagasta falls after posting lower H1 profit
By Sudip Kar-Gupta
LONDON, Aug 26 Britain's top equity index rose
on Tuesday, boosted by expectations of new economic stimulus
measures from the European Central Bank (ECB), with financial
The blue-chip FTSE 100 index was up by 0.6 percent,
or 38.93 points, at 6,814.18 points going into the close of the
The London market was closed on Monday and its gains on
Tuesday saw it play catch-up with an advance in Europe during
the previous session after ECB President Mario Draghi raised
expectations of new stimulus measures, such as quantitative
easing (QE), in a speech late on Friday.
Traders said that QE would give boost banks because they can
borrow at low rates from the central bank and then lend it on at
a slightly higher rate for a profit.
"If QE is on the way in Europe, it should help stock markets
across the board," said Terry Torrison, managing director at
However, copper miner Antofagasta missed out on the
broad market rally, falling 1.5 percent after it posted an 11.5
percent decline in first-half core profit.
The FTSE 100 hit a peak of 6,894.88 points in mid-May, which
marked its highest level since December 1999.
It has since given up much of that ground but some traders
said the index looked set for gains in the near term.
The FTSE 100 is up by 4.4 percent from a low hit more than
two weeks ago after a sell-off triggered in June by worries over
the crisis in Ukraine, where Kiev forces have been fighting
"The broader technical picture is now implying that upward
momentum is such that further near-term gains have become a
realistic expectation," said Bill McNamara, technical analyst at
brokerage Charles Stanley.
(Additional reporting by Tricia Wright; Editing by Hugh Lawson
and David Goodman)