* FTSE 100 up 0.7 percent; Bank of England news awaited
* Banks extend rally; RBS numbers due Friday
* Aviva and Unilever up after results
* Defensives drag as risk appetite returns
By David Brett
LONDON, Aug 6 (Reuters) - Britain's top share index rose 0.7
percent in late morning trade on Thursday, as financials led the
way, driven higher by well-received results over the past couple
of days, with traders awaiting news from the Bank of England.
At 1002 GMT, the FTSE 100 <> index was 32.95 points
higher at 4,679.84, pushing back up towards Monday's intraday
2009 peak of 4,710.23 and having closed 24.24 points weaker on
Wednesday.
Banks were the top risers as this week's earnings news
underpinned the sector's advances, with the second quarter
results by Royal Bank of Scotland <RBS.L>, due on Friday,
rounding off the season.
RBS and Lloyds <LLOY.L>, which reported figures on
Wednesday, vied for the top position on the FTSE risers chart,
up 7 percent and 6.7 percent respectively.
Barclays <BARC.L> added 3.7 percent and HSBC <HSBA.L> rose
3.4 percent, with investors focused on the latest interest rate
and quantitative easing news from the Bank of England due at
1100 GMT.
"There had been thoughts that we may see further measures in
quantitative easing this month, although this now seems unlikely
and it will be signs of exit strategies that traders will be
looking for," said Ian Griffiths, a dealer at CMC Markets.
A poll by Reuters suggests analysts are split as to whether
the BoE will call a pause to its 125 billion pound ($212.2
billion) asset-buying programme or raise the cash total by
another 25 billion pounds, when the decision from its latest
Monetary Policy Committee meeting is announced. [].
"Monday's peak above the 4,700 level could prove hard to
recapture with much depending on what pronouncements come out of
the BoE meeting," said Mic Mills, senior trader at spread
betters ETX Capital.
Life insurer Aviva <AV.L>, up 5.6 percent, found favour
after it posted stronger-than-expected first-half profit, helped
by cost cuts, and said it planned a partial flotation of Dutch
subsidiary Delta Lloyd to bolster its capital. []
Fellow life insurer Prudential <PRU.L>, up 1.3 percent,
joined the rally, but Standard Life <SL.L> lost 1.3 percent
after Citigroup cut its rating to "hold" following weak numbers
on Wednesday.
Non-life insurer RSA Insurance <RSA.L> fell 1 percent as a
cautious outlook statement offset its better-than-expected first
half operating profit. []
Anglo-Dutch household products giant Unilever <ULVR.L>, up
5.8 percent, saw support after forecast-beating results, as
Numis repeated its "add" rating and suggested switching into the
stock from Cadbury <CRBY.L>, as it had more favourable second
half momentum. []
Miners and oil producers added support to the index as metal
and crude prices <CLc1> saw strength on hopes for a revival of
demand as economies revive.
Miners Lonmin <LMI.L>, Fresnillo <FRES.L>, Kazakhmys
<KAZ.L>, BHP Billiton <BLT.L> and Rio Tinto <RIO.> rose between
0.3 and 2.9 percent.
Among oils producers, Tullow Oil <TLW.L>, BG Group <BG.L>,
Cairn Energy <CNE.L> and Royal Dutch Shell <RDSa.L> climbed
0.2-1.8 percent.
DEFENSIVES WEIGH
Defensives weighed on the blue chips with utilities and,
pharmaceuticals down as investors risk appetite returned.
Severn Trent <SVT.L>, United Utilities <UU.L> and Pennon
Group <PNN.L> lost 0.8 to 1.7 percent.
AstraZeneca <AZN.L> and GlaxoSmithKline <GSK.L> were down
0.7 percent and 0.2 percent respectively, but Shire <SHP.L>
bucked the trend, up 4.5 percent, extending Wednesday's gains on
the back of well-received second-quarter results.
Reckit Benckiser <RB.L> dropped 1 percent and Invensys
<ISYS.L> was also a big faller, down 3.2 percent after Goldman
Sachs cut its rating to "neutral" from "buy".
Meanwhile, the European Central Bank (ECB) is scheduled to
announce its decision on interest rates at 1145 GMT
[], and the U.S weekly jobless data is due out at
1230 GMT.
(Editing by Rupert Winchester)
