* FTSE 100 up 0.5 percent
* Cyclicals rally after Europe, US inflation data
* Aberdeen Asset Mgt surges after revenue spike
By David Brett
LONDON, April 29 Mining and energy stocks led
Britain's top share index higher on Monday after inflation data
from Europe and the United States heightened expectations of
more action from central banks to stimulate the economy.
The FTSE 100 closed up 31.60 points, or 0.5 percent,
The index began to rally shortly after German annual
inflation eased to its lowest level in more than two years in
April, boosting chances of a rate cut by the European Central
U.S. consumer spending unexpectedly rose in March but
inflation remained muted, easing concerns of an imminent end to
quantitative easing in the United States.
The U.S. Federal Reserve and European Central Bank both meet
this week, and a Reuters poll of 76 economists showed 43 expect
the ECB to cut rates by 25 basis points.
"A rate cut by the ECB is now priced into the markets,
however, if the ECB fails to cut rates, a sharp sell-off will
follow, as investors are still looking for excuses to lock in
recent gains," Mark Ward, head of execution trading, said.
Miners and oils - companies most
acutely exposed to the fortunes of broader economy - rose the
Energy heavyweight Royal Dutch Shell gained 1
percent, while the miners, which have underperformed the broader
FTSE 100 by around 25 percent in 2013 rose 0.7 percent.
ASSET MANAGERS DELIGHT
A 9 percent rise on the FTSE 100 so far in 2013, despite
anemic global growth, is giving asset managers a boost.
Aberdeen Asset Management surged 8 percent after the
fund firm reported first-half revenues leapt 25 percent.
That lifted sentiment among peers with Schroders up
2.2 percent, which helped the broader financial sector,
including banks, add 4.1 points to the broader FTSE
Financials also received some support after Italy ended
months of political deadlock by forming a government.
The deal brings an end to weeks of political uncertainty
that had could have potentially further destabilised the euro
zone economy, a region to which British financial institutions
have great exposure.
(Reporting by David Brett; Editing by Toby Chopra)