(Corrects fourth bullet point to say monthly, not weekly, gain)
* Banks gain, Barclays surges on upgrade
* Energy, mining stocks lifted by commodity prices
* Fed comments, Asian data lift sentiment
* FTSE on track for biggest monthly gain since 1992
By Simon Falush
LONDON, April 30 (Reuters) - Banks and commodity stocks rallied on Thursday
to lift Britain's FTSE 100 share index 2.1 percent by midday after the U.S.
Federal Reserve gave cause for hope that prospects are brightening for the
global economy.
On a busy day for company results the FTSE 100 <> was
87.79 points higher at 4,277.35 at 1100 GMT, after gaining 2.3 percent on
Tuesday to post its highest close since February 13.
The index is up 9.1 percent in April, its best monthly showing since 1992.
Factory output in Asian export powerhouses Japan and South Korea picked up
in March in another sign that the global slump may be easing, after the Federal
Reserve said the U.S. economic contraction was slowing.
Banks added most points to the blue chip index with HSBC <HSBA.L>, Standard
Chartered <STAN.L>, and Lloyds Banking Group <LLOY.L> adding between 3.6 and 9
percent.
Barclays <BARC.L> jumped 10 percent, the top gainer on the index after Royal
Bank of Scotland <RBS.L> upgraded it to "buy" from "sell".
The UK bank index <.FTNMX8350> is up 99 percent since its trough in March
while Barclays has rocketed by almost 500 percent.
U.S. stocks shot higher on Wednesday after the Fed said the pace of
contraction in the economy appeared to be slowing.
"The economic outlook is looking a bit less gloomy than it did a couple of
weeks ago, and it feels like a market in which investors want to buy," said
Peter Dixon, economist at Commerzbank.
But he cautioned that the rally may not be sustainable.
"The problem is earnings are not getting better so valuations are looking
stretched and the higher markets go the more scope there is for them to fall."
Commodity stocks climbed as raw material prices rose on hopes of an improved
demand outlook.
Miners Rio Tinto <RIO.L>, Kazakhmys <KAZ.L>, Eurasian Natural Resources
<ENRC.L>, Anglo American <AAL.L>, Lonmin <LMI.L> and BHP Billiton <BLT.L> added
between 1.7 and 5.8 percent. Kazakhmys and Anglo American both issued trading
updates.
Energy companies gained as crude <CLc1> rose to nearly $52 per barrel. Royal
Dutch Shell <RDSa.L>, Tullow Oil <TLW.L> and Cairn Energy <CNE.L> added between
0.4 and 1.9 percent.
BG Group <BG.L>G gained 3.8 percent after it posted forecast-beating
first-quarter earnings. []
RATES HELD
At the conclusion of its monetary policy committee meeting on Wednesday the
Fed kept its interest rates unchanged at rock-bottom and the Bank of Japan also
kept its interest rates steady after its latest meeting on Thursday.
But British consumer confidence recovered to its highest level in a year in
April as gloom over the economic outlook dissipated to levels not seen since the
start of the credit crunch, a survey showed on Thursday.
The GfK/NOP consumer confidence barometer rose three points to -27 this
month, its highest level since April 2008 and its third consecutive monthly
rise. []
However, in a sign the economy is still mired in recession, British house
prices resumed their slide in April, data from mortgage lender Nationwide
showed, suggesting last month's rise
might be no more than a blip in a downward trend. []
Cadbury <CBRY.L> fell 1 percent after its first quarter
trading update disappointed, with underlying sales growth of 2
percent below analysts forecasts, Citigroup said in a note.
British Sky Broadcasting <BSY.L> added 5.1 percent after its
results beat forecasts with 80,000 net new customers in the
third quarter.
Investors, who will get U.S. Chicago PMI and core PCE
economic data later in the day, shrugged off uncertainty about
swine flu.
The World Health Organization said on Wednesday the world is
on the brink of a pandemic, raising its threat level to the
penultimate Phase 5. []
(Editing by Greg Mahlich)
