* Commodities, financials gain ground
* U.S. retail data lifts sentiment
By Simon Falush
LONDON, April 9 (Reuters) - Commodity shares bounced back after weakness in
the previous session, fuelling a 0.8 percent rise in Britain's top shares by
midday on Friday after strong U.S. retail data boosted economic recovery hopes.
By 1108 GMT, the FTSE 100 <> was up 45.21 points at 5,757.91,
recovering nearly all of Thursday's losses.
Thursday's 0.9 percent fall was the steepest one-day percentage decline in
six weeks, and the index ended at its lowest closing level since March 31.
U.S. stocks looked set to move higher on Friday, extending the gains seen on
Thursday after top U.S. retail chains posted a record rise in monthly same-store
sales for March, helped by an early Easter holiday and an improving job market,
in the strongest sign yet of revived consumer demand. []
This data brightened the demand outlook, helping lift metal prices and
miners. Rio Tinto <RIO.L>, Xstrata <XTA.L>, Lonmin <LMI.L>, Anglo American
<AAL.L>, Kazakhmys <KAZ.L> and BHP Billiton <BLT.L> added 1.2 to 2.5 percent.
"Data as of late is driving positive momentum, there's a general positive
feeling about the U.S. economy," said Philip Gillett, who added that in the UK,
investors were focusing on the outcome of the election due on May 6.
The UK blue-chip index is up 6.3 percent so far this year after it gained 22
percent in 2009.
Energy firms also benefited from improved sentiment which helped crude
prices <CLc1> recover to over $86 a barrel.
BG Group <BG.L>, BP <BP.L>, Royal Dutch Shell <RDSa.L>, Tullow Oil <TLW.L>
and Cairn Energy <CNE.L> gained 0.9 to 1.9 percent.
FINANCIALS FIRMER
Banks, which tend to benefit as the economic outlook improves, were also a
strong source of support for the index.
HSBC <HSBA.L> Royal Bank of Scotland <RBS.L> and Lloyds Banking Group
<LLOY.L> added 1.1 to 1.5 percent. Barclays <BARC.L> bucked the trend, however,
falling 0.3 percent.
Insurer Aviva <AV.L> was among the top gainers, up 1.6 percent, after it
said it will re-enter the Asian general insurance market five years after
selling its non-life operations there, with Singapore becoming its first market
in the region. []
Peers Standard Life <SL.L> and Prudential <PRU.L> gained 0.3 and 0.9 percent
respectively.
British factory gate inflation rose in March at its fastest pace in 16
months, driven by a surge in the cost of oil and imported goods, official data
showed on Friday.[]
The Office for National Statistics said producer output prices rose 0.9
percent on the month, more than twice the jump analysts had forecast, for an
annual rise of 5.0 percent -- its highest since November 2008.
(Editing by Rupert Winchester)
