Good gains for FTSE
London's leading share index surged ahead today after investors took cheer from news of lower-than-expected inflation data.
The FTSE 100 Index gained 87.9 points to 5795.6 by mid-session trading, lifted by hopes of further interest rate cuts.
The Consumer Prices Index (CPI) rose to 2.2% last month, but was lower than the 2.3% forecast by economists.
Investors took heart from the data, despite warnings that energy price hikes could see CPI surge higher this month.
Rising platinum prices meant miners dominated the risers board, with Lonmin leading the way with a gain of more than 5% or 167p to 3273p after the precious metal hit a new record.
Potential merger partners Rio Tinto and BHP Billiton rose 153p to 5393p and 35p to 1518p respectively.
But Xstrata slipped 63p to 3742p after it reportedly rejected an informal takeover approach from Brazilian firm Vale, which is thought could value Xstrata at around £39 billion.
One of the other major gains came from building products firm Wolseley, which generates a large slice of its business in North America. Shares rose 10.5p to 674p, helped by a report from the White House forecasting that the US economy will grow in 2008 at a similar pace to last year.
Bank shares were mixed ahead of annual results from the sector over the next couple of weeks. Alliance & Leicester was down 2.5p at 577.5p but Barclays rose 17p to 446.25p and Halifax Bank of Scotland added 18p to 654p, a gain of nearly 3%.
Elsewhere, life insurers began to bounce back after yesterday's losses seen after AIG's warning that it would need to write down the value of investments in sub-prime mortgages. Legal & General gained 4.6p to 124.7p and Norwich Union parent Aviva rose 17.5p to 568.5p.
Admiral continued to suffer, however, as did Old Mutual off 25.5p at 909p and 0.2p to 116.1p respectively.
Elsewhere, investment firm Hargreaves Lansdown rose after reporting a 58% rise in half-year profits. Shares were 7.5p higher at 500p, or 1.5%, despite uncertainty about ISA sales in the second half of the year.
Second tier group Balfour Beatty rose 5.25p to 441.5p after it unveiled a US public/private partnership deal, which stands to extend its position as a front runner in the sector, according to brokers.
Meanwhile, internet gaming firm 888 Holdings moved 5.25p higher to 136.75p after posting a 36% rise in net gaming revenues in its first full year without any business in the US.
