Banks, commods boost FTSE after US jobs data

* FTSE up 0.3 pct

* Risk appetite remains after Friday’s U.S jobs figures

* Cable & Wireless Worldwide up on bid talk

By David Brett

LONDON, Sept 6 (BestGrowthStock) – Britain’s leading shares rose on
Monday, led by banks and commodity stocks as risk appetite
remained after a better-than-expected U.S. jobs report in the
previous session.

Cable & Wireless Worldwide gained on bid talk. The British
telecoms firm added 7.0 percent, topping the list of blue chip
risers and hitting a seven-week high, with traders citing a
report in the Independent on Sunday which said Singapore’s
SingTel had contacted bankers in Asia and Europe to discuss the
idea of a bid for Cable and Wireless Worldwide. [ID:nLDE68409C]

“It looks like the M&A theme is continuing,” Richard Hunter,
head of UK Equities at Hargreaves Lansdown Stockbrokers said.

“Sometimes there’s no smoke without fire but by the same
token corporate balance sheets in general are looking strong, so
that’s why we are seeing companies looking around at what they
see as knock-down prices.”

By 0755 GMT, the FTSE 100 (.FTSE: ) was up 18.29 points, or
0.3 percent at 5,446.44, having hit a near four-month closing
high on Friday at 5,428.15 when it rose for the sixth straight

London’s leading share index echoed gains on Friday in the
U.S. and overnight in Asia as investors exuded confidence after
U.S. employment fell for a third straight month in August,
though the drop was far less than expected, and private payrolls
growth surprised on the upside. [ID:nN02227856] [ID:nN03111828]

Economy-sensitive banks (.FTNMX8350: ) were among the top
gainers, up 0.5 percent, with Lloyds Banking Group (LLOY.L: ) up
1.2 percent.

Oil and gas producers (.FTNMX0530: ), lifted by the improving
economic optimism, added 0.8 percent. BP (BP.L: ) rose 1.2 percent
as the Financial Times reported the oil giant revived the sale
of its Alaskan assets after failing to offload them to U.S. oil
and gas company Apache (APA.N: ) in July.

Miners (.FTNMX1770: ) added 0.5 percent.


Home Retail (HOME.L: ), Britain’s No.1 household goods
retailer, gained 1.6 percent after Seymour Pierce raised its
rating to “hold” from “sell”.

In terms of domestic economic data, there is nothing
significant scheduled for release on Monday, while U.S. markets
will be closed for the Labor Day holiday.

“It’s been a muted start … in the absence of any real
corporate news the themes should start kicking in tomorrow, when
we come to the end of the summer period with most people back at
their desks after Labor day,” Hargreaves Lansdown’s Hunter said.

“Over the rest of the course of the week we’re are going to
get some things emerging that will take us through to the end of
the year.”

On the downside, Smith & Nephew (SN.L: ), Europe’s largest
maker of replacement knees and hips, fell 1.1 percent after JP
Morgan downgraded its growth forecasts for the firm.

The FTSE 100 is looking cheaper than other major indexes. It
carried a one-year forward price-to-earnings of 9.55 times and a
12-month forward price-to-books of 1.5 times, compared with U.S.
S&P 500’s (.SPX: ) 11.55 and 1.7 respectively, and Germany DAX’s
(.GDAXI: ) 9.87 and 1.26, according to Thomson Reuters Datastream.

(Editing by Hans Peters)

Banks, commods boost FTSE after US jobs data