* FTSE 100 up 1.2 pct
* BG Group gains after results
* Miners firm as weaker dollar lifts metals prices
By Tricia Wright
LONDON, Nov 2 (Reuters) - Buoyant energy stocks drove
Britain's top share index higher on Tuesday after earnings from
BP <BP.L> and BG Group <BG.L>, while mining stocks provided some
support on the back of a rise in metals prices.
By 1213 GMT the FTSE 100 <> was up 68.14 points, or 1.2
percent, at 5,762.76 in choppy trade as investors awaited the
outcome of a two-day U.S. Federal Reserve policy-setting meeting
starting on Tuesday.
Energy stocks <.FTNMX0530> added the most points to the
index, with BP climbing 1.5 percent following third-quarter
results. Traders said bad news surrounding its Gulf of Mexico
oil spill was well priced in. []
"I think with regards to BP, a lot of the uncertainty is out
of the way and it is slowly but surely getting back to
business," Manoj Ladwa, senior trader at ETX Capital, said.
Peer BG Group advanced 2.9 percent after it posted a 12
percent jump in third-quarter net profit and significantly
upgraded its Brazilian resources. []
Miners <.FTNMX1770>, which rose on Monday after
stronger-than-expected Chinese manufacturing data, were in
demand once again as a weaker dollar supported metals prices.
Antofagasta <ANTO.L> was among the best off, putting on 2.4
percent, with the Chilean copper miner scheduled to release its
third-quarter production report on Wednesday.
Aviva <AV.L> rose 1.6 percent as the insurer reported sales
for the first nine months in line with expectations and said it
was set for "strong profitable growth" in 2010.
EYES ON U.S. EVENTS
Despite the upbeat corporate news flow, investors remained
wary ahead of the Fed meeting and U.S. mid-term elections.
At its meeting in Washington, the Fed will consider the
prospect of further quantitative easing. Markets are pricing in
a commitment to buy at least $500 billion in Treasury debt over
the coming months to spur a flagging economy. []
"The FTSE... has had quite a nice boost obviously from BP...
(and it) is doing better this morning than (European indexes)
because we haven't got this uptick in fear about the European
sovereign debt crisis, which isn't affecting us to the same
extent," David Morrison, market strategist at GFT Global, said.
"But it's all short-term stuff. Ultimately we will live or
die by what happens in the U.S.," he said.
Imperial Tobacco <IMT.L>, the world's fourth-biggest
cigarette maker, rose 3.2 percent after meeting forecasts with
an 11 percent rise in annual earnings as price increases offset
lower overall sales volumes.
Peer British American Tobacco <BATS.L> climbed 2.4 percent.
Banks <.FTNMX8350> were mixed, with Lloyds Banking Group
<LLOY.L> dropping 1.9 percent as concerns over losses from
problem loans and tougher competition overshadowed an upbeat
trading statement from the part-nationalised British lender.
Royal Bank of Scotland <RBS.L>, due to issue an update on
Friday, shed 0.5 percent, while Barclays <BARC.L> slipped 0.3
percent ahead of its update on Nov. 9.
But HSBC <HSBA.L>, set to issue an update on Friday, rose
1.4 percent, with Standard Chartered <STAN.L> up 1.8 percent.
Elsewhere, Serco <SRP.L> slid 4 percent, the top FTSE 100
faller, as investors continued to shun the company that
apologised on Monday for asking suppliers to make cash rebates
on work for this year or risk losing future contracts.
(Editing by Michael Shields)
