Reuters: Hot Stocks: Chinese data helps miners lift Britain's FTSE

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Chinese data helps miners lift Britain's FTSE Dec 3rd 2012, 09:09 Mon Dec 3, 2012 4:09am EST * FTSE 100 rises 0.3 pct to 5,885.87 points * Chinese data boosts equity markets and major mining stocks * Schroders rises after Merrill upgrades stock to "buy" * Traders divided over extent of future gains for FTSE By Sudip Kar-Gupta LONDON, Dec 3 (Reuters) - Britain's benchmark share index edged higher on Monday after a rise in manufacturing data from China, the world's top metals consumer, boosted sentiment towards mining stocks. However, traders had mixed views over whether or not the UK stock market would advance much further due to uncertainty over the U.S. "fiscal cliff" - a combination of spending cuts and tax rises due to be implemented in early 2013 that could tip the U.S. economy back into recession. The blue-chip FTSE 100 index was up by 0.3 percent, or 19.19 points higher, at 5,886.01 points in early morning trade. British fund management group Schroders was the top-performing FTSE 100 stock, rising 3.6 percent on the back of broker Bank of America Merrill Lynch upgrading the stock to "buy" from "neutral." The improvement in the Chinese manufacturing data also pushed the FTSE 250 mining index up by 1 percent. Miners Rio Tinto and BHP Billiton added the most points to the FTSE 100, with Rio rising by 1.3 percent to 3,133.50 pence. Hartmann Capital trader Basil Petrides said he would consider buying Rio stock at 3,070 pence and would use any pull-backs on the FTSE 100 to buy equities, as they could rise further ahead of any traditional rally around Christmas time. "I would be a buyer of the market on dips, there is the potential for a push to the upside on a Christmas rally," said Petrides. However, JN Financial investment manager Edward Smyth said any failure by the FTSE 100 to rise and hold above 5,900 could result in the index losing ground again. "If we struggle to break through and hold above 5,900 and break below and hold below 5,865, this is a sign that the market does not have the strength to hold above 5,900 and we could see a correction," he said. "There is major resistance between 5920-5940 and it would require an event or a headline of relatively special circumstance to achieve sustainable price action above these levels," he added. (Reporting by Sudip Kar-Gupta; editing by Patrick Graham) Link this Share this Digg this Email Reprints

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