* FTSE up 1.4 pct, commodities up as dollar ebbs
* Banks gain on hopes of progress on Ireland's debt crisis
By David Brett
LONDON, Nov 18 (Reuters) - Commodity-linked stocks powered a
rally in Britain's top share index on Thursday, as a retreating
dollar boosted commodity prices and strong corporate results
pushed up shares in SABMiller.
By 1156 GMT, the FTSE 100 <> was up 81.27 points, or
1.4 percent, at 5,773.83 after it gained 0.2 percent on
Wednesday.
Energy <.FTNMX0530> and mining <.FTNMX1770> stocks such as
Xstrata <XTA.L>, up 2.3 percent, gained along with commodity
prices as the dollar's rally stalled after subdued U.S.
inflation data reinforced the Federal Reserve's case for
quantitative easing.
Privately held commodities group Glencore [], which
holds a stake of nearly 35 percent in Xstrata, is considering
listing in the first half of next year, according to sources.
[]
Brewer SABMiller <SAB.L> was the top gainer, up 4.8 percent
after posting a rise in half-year earnings. []
"Results are again showing that while the macro economic
picture remains shaky corporates continue to thrive," Jimmy
Yates, head of equities at CMC Markets, said.
British Airways <BAY.L> climbed 4.1 percent after solid
results from Air France-KLM boosted optimism in the
sector.[]
Among second line stocks, QinetiQ <QQ.L> rose 10.8 percent
after the defence technology firm posted a better-than-expected
14 percent rise in first half profit. []
Melrose <NYN.L> gained 4.4 percent after the manufacturing
buyout firm says trading was ahead of its expectations.
[]
Back among the blue chips, Intercontinental Hotels <IHG.L>
climbed 2.6 percent as Nomura repeated its "buy" stance, ahead
of a strategy day on Nov. 23. Nomura said the firm "is well
placed to execute on long-term growth strategy."
IRELAND RELIEF
Ireland's willingness to work with a European Union-IMF
mission on steps to shore up its banking sector, helped support
bank stocks, with Lloyds Banking Group <LLOY.L> up 2.6 percent.
<.FTNMX8350>. []
"There is confidence that the right mechanisms are in
place," said Andrew Bell, chief executive of Witan Investment
Trust.
U.S. stock index futures pointed to a higher opening for
Wall Street on Thursday, reflecting optimism about progress on
tackling Ireland's debt crisis.
Across the Atlantic, the latest weekly U.S. jobless claims
numbers will be scrutinised at 1330 GMT, with October lead
indicators and November's Philly Fed index both due at 1500 GMT.
UK data painted a mixed picture of the economy, with British
retail sales volumes picking up in October, while public
borrowing hit a record high for the month. []
On the downside, outsourcer Capita <CPI.L> fell 5.6 percent,
topping the blue-chip <> fallers list, after the firm's
quarterly trading update. []
Execution Noble said in a note a lack of new contracts would
put downward pressure on 2011 top-line expectations.
Intertek <ITRK.L> shed 4.6 percent after the testing
equipment firm issued a cautious update, prompting Seymour
Pierce to cut its rating to "hold". []
National Grid <NG.L> fell 1.1 percent after posting
first-half results. Traders cited doubts about the group's
exposure to the United States and a recognition of its strong
gains so far this year, as reasons for the fall. []
