FTSE ends up as commodities rally
LONDON (Reuters) - The top share index ended up 0.9 percent in a choppy session on Thursday as firmer metal and crude prices lifted commodity stocks, though Rolls-Royce (RR.L: Quote, Profile, Research) fell on negative broker notes.
The commodity-heavy FTSE 100 .FTSE closed 48.8 points higher at 5,497.4 after losing 1.6 percent on Wednesday. The benchmark is down nearly 15 percent for the year.
"It's low volume. The FTSE 100 certainly seems to be stuck between 5,450 and 5,550 on the upside," said Manoj Ladwa, a derivatives trader at TradIndex.
"The market initially took a dip on the back of the U.S. CPI data, but then shrugged off the bad news," he said, adding that the market may test the 5,550 level on Friday.
U.S. consumer prices rose more than expected last month to post the fastest rate of year-over-year growth in 17-1/2 years.
Commodity shares rallied, contributing most of the gains on the FTSE 100, as metal and crude CLc1 prices rose.
Rio Tinto (RIO.L: Quote, Profile, Research), BHP Billiton (BLT.L: Quote, Profile, Research), Anglo American (AAL.L: Quote, Profile, Research), Xstrata (XTA.L: Quote, Profile, Research), Antofagasta (ANTO.L: Quote, Profile, Research) and Ferrexpo (FXPO.L: Quote, Profile, Research) were up between 2.9 and 4.7 percent.
In the oil and gas sector, BP (BP.L: Quote, Profile, Research), Royal Dutch Shell (RDSa.L: Quote, Profile, Research), BG Group and Tullow Oil (TLW.L: Quote, Profile, Research) added 0.5 to 4.3 percent. Oil and gas services firm Petrofac (PFC.L: Quote, Profile, Research) also rose 4.5 percent.
Banks were mixed, with HSBC (HSBA.L: Quote, Profile, Research), Royal Bank of Scotland (RBS.L: Quote, Profile, Research) and Standard Chartered (STAN.L: Quote, Profile, Research) up. But Barclays (BARC.L: Quote, Profile, Research), HBOS HBOS.L and Lloyds TSB (LLOY.L: Quote, Profile, Research) were down. Continued...
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