* FTSE 100 up 0.6 pct; hits fresh 21-month intra-day peak
* Commods buoyed by demand optimism after strong U.S. data
* Imperial Tobacco, Vodafone, AstraZeneca among top fallers
By Tricia Wright
LONDON, April 6 (Reuters) - Stronger energy stocks and
miners powered Britain's top share index to a 21-month high by
midsession Tuesday, as strong U.S. data over the holiday period
brightened the outlook and investors shunned defensive stocks.
By 1201 GMT, the FTSE 100 <> was up 32.24 points at
5,777.13, having earlier hit a fresh 21-month intra-day peak of
5,790.40. The index climbed 1.2 percent on Thursday and was
closed on Friday and Monday for the Easter holiday.
Energy stocks were the standout gainers after crude <CLc1>
surged to its highest level since October 2008 on Monday, with
BG Group <BG.L>, BP <BP.L> and Royal Dutch Shell <RDSa.L> adding
1.5 to 1.9 percent.
Against a backdrop of firmer metals prices, miners also
rose. Xstrata <XTA.L>, Kazakhmys <KAZ.L> and Vedanta Resources
<VED.L> were among the best off, adding 1.2 to 3 percent.
"The FTSE 100 is really just moving on the view that there
is now a very tangible sign of a sustainable recovery in America
and I think America is looked to for financial and economic
leadership," said Mike Lenhoff, chief strategist at Brewin
Dolphin.
The U.S. services sector grew at its fastest pace in nearly
four years in March and future home sales unexpectedly rose in
February, data showed on Monday. []
The UK blue chip index gained almost 5 percent in the first
quarter of 2010, after it rose 22 percent in 2009.
The next resistance level for the FTSE 100 is 5,973.
According to Stephen Pope, chief global equity strategist at
Cantor Fitzgerald.
Also flagging an improving economy, the Conference Board, a
private research group, said on Monday the U.S. job market
strengthened for a seventh consecutive month in March, with
fewer Americans having trouble finding work. []
This added to a solid non-farm payrolls report on Friday
which showed U.S. employers created jobs in March at the fastest
rate in three years as private firms stepped up hiring.
[]
BANKS FIRM
UK banks were also in favour, led by Royal Bank of Scotland
<RBS.L>, up 2 percent. U.S. billionaire and Wall Street
turnaround expert Wilbur Ross is backing Virgin Money's bid to
buy the branch network of RBS according to the Sunday Times and
Sunday Telegraph. []
Barclays <BARC.L>, Lloyds Banking Group <LLOY.L> and
Standard Chartered <STAN.L> put on 0.5 to 1.1 percent.
Among individual movers, British insurer Admiral Group
<ADML.L> gained 5 percent, touching a life-time high. Investor
sentiment was bolstered by recent management visits that have
added to a conviction that it is well-placed to take market
share from its rivals, traders said.
With investors' moods buoyed by signs of U.S. economic
recovery, defensive stocks peppered the FTSE 100 fallers list.
Imperial Tobacco <IMT.L> shed 1.8 percent, Vodafone <VOD.L> lost
1.6 percent, and AstraZeneca <AZN.L> fell 1 percent.
BAE Systems <BAES.L> lost 0.8 percent with traders pointing
to a Goldman Sachs note sent on Monday which rated the defence
company as a "conviction sell", though they noted that this was
just a reiteration of the broker's existing stance.
British Prime Minister Gordon Brown confirmed on Tuesday
that a general election will be held on May 6.
"(The election) is rather academic for the UK equity market.
Don't forget we are talking about large, international blue
chips whose business is, to a very large extent, outside the
UK," Lenhoff said.
(Editing by Elaine Hardcastle)
