* FTSE 100 rises 6.3 pct by midday, led by commodity stocks
* Financials up, U.S. to inject $250 bln into its banks
* Cadbury Q3 sales rise, stock up
(For more on the financial turmoil, click on [])
By Dominic Lau
LONDON, Oct 14 (Reuters) - Britain's top share index was up
6.3 percent by midday on Tuesday, extending the previous
session's sharp gain, with Washington set to unveil a $250
billion injection into its banks, further easing market anxiety.
The gains came after the FTSE 100 <> posted its second
best one-day percentage rise ever on Monday. The benchmark
plummeted 21 percent last week -- the index's second worst
weekly fall ever -- on liquidity strain and global recession
fears.
By 1052 GMT, the FTSE 100 was up 265.9 points at 4,522.8.
The index is still down 30 percent for the year, however.
Beaten-down banks were among the standout gainers, with the
FTSE 350 banks index <.FTNMX8350> up 3.7 percent.
Barclays <BARC.L>, Royal Bank of Scotland <RBS.L>, HSBC
<HSBA.L> and Standard Chartered <STAN.L> put on 2.2 to 11.7
percent.
Following similar measures in Europe, the U.S. Treasury is
due to unveil its plan at 1230 GMT with about half of the $250
billion likely to go to the top nine U.S. banks to get them
lending to each other again, people familiar with the plan said.
"It does seem that the coordinated move by governments seems
to have done the trick. They have pulled a little bit of money
back into the market. I suppose it's a little bit of
wait-and-see," said Mark Priest, a senior trader at ETX Capital.
"We have seen what these markets can be when they are not
happy," he said.
"Everybody is a bit wary of just giving away free money
because we have seen what it can lead to."
The expected announcement lifted Asian and European stocks,
with Japan's Nikkei average <> surging over 14 percent to
post its biggest one-day gain in its 58-year history.
The Dow Jones industrial average <> rose 11 percent
overnight, its biggest one-day point gain ever and its biggest
percentage gain since March 15, 1993.
Insurers were also in demand, with Old Mutual <OML.L> adding
8.3 percent, Prudential <PRU.L> climbing 5.7 percent and Aviva
<AV.L> advancing 6.8 percent.
Hedge fund Man Group <EMG.L> strengthened 7.9 percent, while
interdealer broker ICAP <IAP.L> leapt 13.6 percent.
Financials have been boosted by a sense that a frozen credit
market may be starting to thaw, but analysts said more monetary
easing, in addition to a coordinated 50 basis-point rate cuts by
major central banks, would be needed.
"The most important thing is to get money markets working
again," said Neil Parker, market strategist at Royal Bank of
Scotland.
"If we can do that, with a combination of the measures that
have already been put in place and further interest rate cuts
from the central banks, then we could be reaching a turning
point."
LIBOR three-month dollar rates slipped to 4.635 percent from
4.7525 percent on Monday.
British consumer price inflation hit a 16-year high of 5.2
percent in September, but Bank of England policymakers had
anticipated the rise which is unlikely to stand in the way of
further rate cuts. []
SHINING METALS, SLICK CRUDE
Commodity stocks were the top-weighted gainers as crude
prices <CLc1> rose by $3 a barrel to trade above $84 and metal
prices <XAU=> <MCU3=> gained.
BP <BP.L>, Royal Dutch Shell <RDSa.L>, BG Group <BG.L> and
Cairn Energy <CNE.L> advanced between 5.7 and 9.2 percent.
Among miners, Eurasian Natural Resources <ENRC.L>, Anglo
American <AAL.L>, BHP Billiton <BLT.L>, Rio Tinto <RIO.L>,
Vedanta Resources <VED.L> and Antofagasta <ANTO.L> tacked on 5.2
to 13.2 percent.
Cadbury <CBRY.L> rose 6.2 percent after the confectionery
group reported a 6 percent rise in third-quarter underlying
sales as it announced a further 580 job cuts to keep it on track
to meet its annual sales and profit margin goals. []
(Additional reporting by Simon Falush; Editing by Greg Mahlich)
