Commodities lead London higher

Commodity stocks led the London market higher today as the FTSE 100 Index looked to finish the week on a positive note.

Asian markets gained after figures showed Japanese industrial production jumping at its fastest pace in 56 years during April – while miners were also helped by takeover speculation.

With oil reaching a new six-month high above $66 (€47) a barrel, the Footsie was 54.9 points higher at 4442.5 by mid-morning.

A surprise bounce in May house prices from the Nationwide and hopes for better-than-expected US GDP figures later today also helped sentiment.

With a weaker US dollar also adding to higher oil and metal prices, one of the biggest gains of the session came from Randgold Resources, which climbed 198p to 4586p as spot gold prices reached a three-month high.

Speculation from Nomura over a potential merger between miners Xstrata and Anglo American saw the duo rise 42p to 691.5p and 72p to 1761p respectively as the sector dominated the risers board.

Tullow Oil proved the exception to the wider commodity gains after a disappointing drilling update from Uganda saw it drop 19p to 1000p. Airline British Airways was another faller, down 2.3p to 154.5p on the higher oil price and downbeat comments from ratings agency Moody’s.

But the 1.2% rise in Nationwide house prices lifted housebuilders, with Taylor Wimpey up 1.5p at 30.75p, Persimmon 16.75p stronger at 362.25p and Redrow 9.25p higher at 199.25p.

Broadcaster ITV was also high up the FTSE 250 risers board after the OFT advised the UK Competition Commission to consider changes to the regulatory regime introduced in the wake of ITV’s creation from the merger of Carlton and Granada in 2003. Shares jumped more than 7% or 2.75p to 39.75p.

There was also a gain of 1.5p to 16.5p for Moss Bros after the menswear chain reported an improved sales trend in recent weeks.