By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Miners posted some of the biggest gains
in London on Tuesday after sector heavyweight BHP Billiton PLC
reported a rise in profit, while oil firms advanced as energy
prices climbed higher.
The FTSE 100 index gained 0.5% to 6,769.36, setting it on track
for a third straight day of gains.
Shares of BHP Billiton PLC (BHP) advanced 2% after the miner
said first-half profit rose as it cut spending and squeezed more
from assets.
Other mining firms also traded in positive territory. Shares of
Anglo American PLC gained 1% and Glencore Xstrata PLC (GLCNF)
picked up 0.5%. Metals prices were mainly lower.
Oil firms further helped lift the U.K. benchmark, tracking a
solid rise in oil prices. Shares of BP PLC (BP) climbed 1.5%, Royal
Dutch Shell PLC (RDSB) picked up 1.1% and BG Group PLC gained
0.6%.
On the data front in the U.K., the Office for National
Statistics said inflation fell below the Bank of England's 2%
target in January for the first time in more than four years.
Annual inflation fell to 1.9% from 2% in December, easing pressure
on the central bank to raise rates.
Chris Williamson, chief economist at Markit, called the current
situation with strong economic growth and low inflation a
"Goldilocks" scenario and said it "adds to the scope for policy
makers to keep their foot on the accelerator for longer via lower
interest rates to help drive a strong and more sustainable
recovery."
Banks rose after the data, with shares of Royal Bank of Scotland
Group PLC (RBS) up 2.3%, Barclays PLC (BCS) 2.2% higher and
Standard Chartered PLC rising 1%.
Outside the main index in London, shares of John Wood Group PLC
climbed 4.4% after the oil- and gas-services company posted a rise
in 2013 pretax profit and said it is well positioned for the longer
term.
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