* FTSE 100 up 1.2 percent
* Index plays catch-up with Wall Street
* ITV looking at Scandinavian tie-up - media report
* Lloyds rises on reports of overseas interest
By David Brett
LONDON, July 8 Britain's top shares rose early
on Monday, playing catch-up with late Friday gains in the United
States and underpinned by the promise of an ultra-loose monetary
By 0737 GMT, the FTSE 100 was up 73.09 points, or
1.2 percent to 6,448.61, recovering the previous session's
"Markets have opened higher on a stronger U.S. market which
rebounded (on Friday) to close on the session highs," Jawaid
Afsar, sales trader at SecurEquity, said.
Markets remain sensitive to talk of central bank stimulus
support being withdrawn, and Afsar said the likelihood of more
rather than less quantitative easing by the Bank of England
following comments last week from new governor Mark Carney would
support further share price gains.
The FTSE 100 has rallied near 7 percent in the last 10
trading days after hitting lows in late June that marked a near
12 percent fall from May highs.
The first week of July saw central bankers in the euro zone
and UK adding their voices to those of U.S. Federal Reserve
members arguing that the death of quantitative easing may be a
lot less imminent than markets are suggesting.
Among the early risers on the FTSE 100 was free-to-air
broadcaster ITV, which gained 1.5 percent after the
Sunday Times reported the firm may bid up to 90 million pounds
for Scandinavia's Nice Entertainment, one of the largest Nordic
"As long as ITV does not get involved in an expensive
bidding war and shows discipline, a deal should be positive,"
Liberum said in a note.
Lloyds Banking Group shares rose more than 2
percent early after reports overseas investors were circling to
buy up to half of the government's stake in the bank.
(Reporting by David Brett; Editing by John Stonestreet)