* FTSE 100 up 0.8 percent after three-day losing run
* Heavyweight financials and commods lead rally
* Investors await U.S. non-farm payrolls data
By David Brett
LONDON, Sept 4 (Reuters) - Britain's leading share index was
up 0.8 percent at midday on Friday as a broad-based rally ended
a three-day losing streak, with heavyweight miners and
financials leading gainers ahead of U.S. jobs data.
By 1041 GMT, the FTSE 100 <> was up 40.32 points at
4.837.07. The benchmark is up 14 percent this quarter, on track
for its best quarterly rise since the fourth quarter of 1999.
Thin volumes accentuated the surge in prices as traders
continued to make their way back from summer holidays, with the
FTSE 100 trading at 30 percent of its 90-day average volume.
Miners were in demand as gold <XAU=> flirted with $1,000 an
ounce. The precious metal is seen as a traditional safe haven
and has seen renewed interest from investors in recent days.
Gold miner Randgold Resources <RRS.L> was up 1 percent,
while BHP Billiton <BLT.L>, Anglo American <AAL.L>, Xstrata
<XTA.L> and Kazakhmys <KAZ.L> put on 1.4-4.1 percent.
Lonmin <LMI.L>, the world's third biggest platinum producer,
surged 7.4 percent on speculation former suitor Xstrata <XTA.L>
would renew a takeover bid after regulatory restrictions lapse
next month.
Rio Tinto <RIO.L> advanced 2.4 percent. The miner has
suspended iron ore price talks with Chinese steel mills after
its top salesman in China was detained, Australia Associated
Press quoted Rio's iron ore boss as saying. []
U.S. non-farm payrolls figures and unemployment rate, due at
1230 GMT, will provide further insight into the state of the
world's largest economy.
"Investors are eyeing the jobless figures ... although we've
been dragged 40-odd points higher we're not keen on making
further gains until we've seen the figures," MF Global broker
Neil Adams said, adding investors have sought oversold stocks
and were now "sitting on their hands" waiting for the figures.
U.S. employers were forecast to have cut 225,000 jobs in
August, down from 247,000 in July. The unemployment rate was
forecast to have edged up to 9.5 percent from 9.4 percent.
"We've had two disappointing numbers already this week (APD
and Weekly Jobless numbers). Anything in and around the number
and the market may have a bit of relief and move higher again,"
said Adams.
FINANCIALS, ENERGY WANTED
Banks, one of the biggest beneficiaries of government
stimuli, were higher. HSBC <HSBA.L>, Barclays <BARC.L>, Lloyds
Banking Group <LLOY.L>, Royal Bank of Scotland <RBS.L> and
Standard Chartered <STAN.L> added 1.2-2.9 percent.
Insurers also joined in the rally. Aviva <AV.L>, Legal &
General <LGEN.L> and Prudential <PRU.L> gained 2.7-4.1 percent.
Oils rebounded from the previous session's sell-off, and
ahead of the meeting of OPEC ministers in Vienna next week when
they are expected to convince the group to hold output steady
for now, with crude around $68 a barrel.
Cairn Energy <CNE.L>, Tullow Oil <TLW.L>, BG Group <BG.L>
and Royal Dutch Shell <RDSA.L> rose 0.1-2 percent.
UPGRADES
UBS increased its estimates of earnings per share (EPS)
growth for European corporates for 2010 to 25 percent from 15
percent, citing continuing improvements in the economy.
"Given our view on the bounce-back in earnings growth next
year and increasing conviction that the economic cycle has
turned, we feel the fundamental backdrop remains supportive,"
said Nick Nelson, UBS's European equity strategist.
Vodafone <VOD.L> advanced 1.8 percent. The Financial Times
reported Deutsche Telekom <DTEGn.DE> had held preliminary talks
with Vodafone, France Telecom <FTE.PA> and Spain's Telefonica
<TEF.MC> over the sale of its T-Mobile UK unit.
Among other movers, Land Securities <LAND.L> rose 3 percent,
as the Times reported the company was close to securing a deal
with the Australia Future Fund over the sale of its large share
in the Bullring shopping centre in Birmingham,.
Reed Elsevier <REL.L> gained 1.8 percent after Goldman Sachs
added the Anglo-Dutch publisher to its 'conviction buy' list.
Peer Pearson <PSON.L> was among the top FTSE 100 fallers,
down 1 percent after Goldman downgraded the Financial Times
publisher to 'sell' from 'neutral'.
