Miners, banks aid FTSE rally; BoE rates held

* FTSE 100 up 0.4 pct

* Banks, miners rally; upbeat comments on U.S. economy

* BP down on dividend, litigation worries

By Simon Falush

LONDON, June 10 (BestGrowthStock) – Britain’s top shares rose by
midday on Thursday, as gains in banks and miners on improved
economic sentiment outpaced losses in BP (BP.L: ), hurt by worries
about costs associated with an oil spill in the Gulf of Mexico.

The Bank of England left interest rates at a record low of
0.5 percent and left quantitative easing at 200 billion pounds
($291.3 billion), as expected.

By 1115 GMT, the FTSE 100 (.FTSE: ) was up 20.52 points, or
0.4 percent, at 5,106.38, having broken a three-day losing
streak on Wednesday, closing up 1.2 percent.

China’s exports jumped in May, reassuring investors about
the economy’s strength while imports also grew robustly,
testifying to the underlying momentum of the world’s
third-largest economy despite government attempts to cool the
red-hot property market.

“The surprising data from China was very positive and with
no surprises on interest rates, the market seems to be shrugging
off overdone fears of sovereign debt,” said Micky Mahububani,
senior sales trader at IG Index.

Banks gained ground helped by positive comments made by
Federal Reserve Chairman Ben Bernanke on the U.S. economy
overnight and ahead of the latest interest rate decision from
the Bank of England due at 1100 GMT, at which no change is
expected.

Barclays (BARC.L: ), HSBC (HSBA.L: ), Lloyds Banking Group
(LLOY.L: ), Royal Bank of Scotland (RBS.L: ) and Standard Chartered
(STAN.L: ) were up 0.5 to 2.6 percent.

The European Central Bank will also announce its interest
rate decision on Thursday, with the status quo expected to be
maintained when an announcement is made at 1145 GMT.

Miners were firmer along with metals prices as market
confidence was boosted after China reported a surge in total
exports in May, lifting the demand outlook. [ID:nBJB003863]

Fresnillo (FRES.L: ), Rio Tinto (RIO.L: ) and Eurasian Natural
Resources (ENRC.L: ) added 1.7 to 2.8 percent.

BP (BP.L: ) was down 4.7 percent, however, having recovered
from early falls of over 11 percent, with investors’ main
concerns surrounding the company’s ability to pay its dividend
and the costs BP will have to assume to deal with liabilities
related to the disaster. [ID:nN09136035]

Stock Market Today

($1=.6865 Pound)
(Editing by Simon Jessop)

Miners, banks aid FTSE rally; BoE rates held