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.
The FTSE 100 index gained 0.9% to close at 6,796.43, marking a
third straight day of gains.
Shares of BHP Billiton PLC (BHP) advanced 1.9% after the miner
said first-half profit rose as it cut spending and squeezed more
from assets.
Among other mining firms, shares of Anglo American PLC gained
2.3% and Glencore Xstrata PLC (GLCNF) picked up 0.4%. Metals prices
were mixed.
Oil firms further helped lift the U.K. benchmark, tracking a
solid rise in oil prices. Shares of BP PLC (BP) advanced 1.5%,
Royal Dutch Shell PLC (RDSB) climbed 1.8% and BG Group PLC gained
1%.
Meanwhile, 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) gaining 2.4%, Barclays PLC (BCS) advancing 2.1% and
Standard Chartered PLC adding 1.1%.
On a more downbeat note, shares of Centrica PLC dropped 1.3%
after UBS cut the utility firm to sell from neutral. The analysts
said the company faces risks from political intervention as the
Labour Party seeks to freeze energy bills in the U.K.
Outside the main index in London, shares of John Wood Group PLC
climbed 6.7% after the oil- and gas-services company posted a rise
in 2013 pretax profit and said it is well positioned for the longer
term.
More must-reads from MarketWatch:
Iran nuclear talks resume amid deep caution
Once a skeptic, Schroeder says Germany needs the euro
Follow U.S. market action on the live blog
Subscribe to WSJ: http://online.wsj.com?mod=djnwires