FTSE rebounds 0.6 percent led by banks, miners

* Banks higher; Goldman Sachs results awaited

* Miners, oils rally with commodity prices

* Tesco slips back after results

By Jon Hopkins

LONDON, April 20 (BestGrowthStock) – Britain’s top shares added 0.6
percent in early deals on Monday, recovering a chunk of the
sharp falls seen in the previous two sessions as banks rallied,
and miners and oils rebounded with commodity prices.

By 0801 GMT, the FTSE 100 index (.FTSE: ) was up 31.66 points
at 5,759.57 having ended down 16.05 points, or 0.3 percent, on
Monday, after sliding 1.4 percent on Friday.

“After the recent falls, the market looked ripe for a
rebound, so it’s no surprise that we have rallied. But like a
volcano there still remains plenty going on underground and
fresh eruptions and dust clouds can be expected,” said Mic
Mills, senior trader at ETX Capital.

Banks led the blue chip rebound as investors focused on
strong earnings on Tuesday from U.S. peers Citigroup (C.N: ) and
pushed aside worries over the implications of Friday’s fraud
charges against Goldman Sachs (GS.N: ).

Royal Bank of Scotland (RBS.L: ) was the top performing bank,
up 1.2 percent helped by recent bullish broker comments, while
Barclays (BARC.L: ), HSBC (HSBA.L: ), Standard Chartered (STAN.L: ),
and Lloyds Banking Group (LLOY.L: ) gained 0.2 to 0.7 percent

Goldman Sachs posts its first-quarter numbers on Tuesday and
investors will be hoping for strong numbers to move the
attention away from the U.S. Securities and Exchange
Commission’s fraud charge made against the bank. [ID:nN16131161]

Commodity stocks also lent their strength to the FTSE 100
index as crude and metal prices rebounded, following falls in
the previous session.

Among the miners, BHP Billiton (BLT.L: ), Rio Tinto (RIO.L: ),
Xstrata (XTA.L: ), Anglo American (AAL.L: ) and Kazakhmys (KAZ.L: )
gained 1.1 to 1.9 percent as base metal prices rose and gold
held steady.

Oil majors BP (BP.L: ), BG Group (BG.L: ), Royal Dutch Shell
(RDSa.L: ) and Cairn Energy (CNE.L: ) added 0.3 to 1.2 percent as
crude (CLc1: ) rebounded from three-week lows on an increase in
jet fuel demand as the dissipating volcanic ash cloud meant some
European planes returned to the skies.

However, Tullow Oil (TLW.L: ) was the biggest FTSE 100 faller,
down 2 percent after the oil explorer said its Dahoma-1
exploration well in Ghana had failed to find oil. [ID:nWLB2896]

TESCO SLIPS

Tesco (TSCO.L: ), the world’s No.4 retailers, was also a
blue-chip faller, losing 0.1 percent after signaling a slowdown
in its main British marke ater meeting forecasts with a 9
percent rise in full-year profit. [ID:nLDE63J0FN]

Other food retailers suffered in sympathy, with Sainsbury
(SBRY.L: ) and WM.Morrison (MRW.L: ) losing 0.2 and 0.6 percent,
respectively.

Publisher Reed Elsevier (REL.L: ) was also weak, down 0.5
percent after its trading update confirmed its forecast for a
slightly lower operating margin in 2010. [ID:nLDE63I2CF]

Also among the FTSE 100 fallers, tour operator TUI Travel
(TT.L: ) fell 1.1 percent, while airline British Airways (BAY.L: )
lost 0.8 percent as uncertainty over the full impact of the
volcanic ash cloud on the travel industry continued.

However, mid cap discount airline easyJet (EZJ.L: ) managed to
rally 1.2 percent higher helped by a JPMorgan upgrade to
“overweight” from “neutral” as it raised estimates.

Back among the blue-chip gainers, brewer SABMiller was the
top riser, up 3.7 percent after it issued an upbeat trading
statement with organic lager volumes up 2 percent in the fourth
quarter. [ID:nWLB2900]

Food producer to clothing retailer AB Foods (ABF.L: ) gained
2.4 percent after its first-half results beat forecasts.
[ID:nWLB2930]

On the macroeconomic front, investors were awaiting the
latest UK inflation numbers, due at 0830 GMT, with March CPI
seen up 0.3 percent month-on-month and 3.2 percent on an
annualised basis, after 0.4 percent and 3.0 percent rises in
February.

Investment Advice

(Editing by Karen Foster)

FTSE rebounds 0.6 percent led by banks, miners