Miners lead FTSE higher

Miners led the FTSE 100 Index higher today as traders awaited crucial US jobless figures.

The Footsie gained 47 points to 4843.8 by the mid-morning although the non-farm payroll data – predicted to show a 200,000 drop during August – will set the tone for the end of the trading week.

Blue-chip stocks fought back after three successive losing days but commentators warned that disappointing figures could test fragile investor confidence.

Lonmin and Kazakhmys set the pace among the miners following broker upgrades, rising 8% or 114p to 1556p and 43.5p to 991.5p respectively.

There were also modest gains for banking stocks after recent falls on fears the sector may ask investors for cash. Lloyds Banking Group recovered 3.53p to 103.23p, while Royal Bank of Scotland added 1.45p to 56.45p.

Insurers joined in the rally after a turbulent week marked by concerns over a huge rise in capital requirements under new European rules.

Aviva was up 17.7p to 405p, Legal & General added 2.7p to 70.75p and Prudential was 14p stronger at 538p.

Financial Times-to-Penguin publishing firm Pearson led a shortened fallers board, down 6.5p to 728.5p after Goldman Sachs cut its rating to sell in a review of the European media sector.

In the FTSE 250 broadcaster ITV, which was also downgraded by Goldman, added 0.32p to 46p.

But Trinity Mirror surged more than 16% or 22.5p to 157.75p as UBS predicted cheaper newsprint costs in 2010.

Housebuilders dominated the second tier after Credit Suisse said prospects for the sector appeared brighter, adding that the risks posed by unemployment and poor credit conditions were already factored in to prices.

Barratt Developments jumped 8% or 18p to 251.2p, Bellway cheered 25.5p to 869.5p, Redrow lifted 4.3p to 235.4p and Persimmon rose 22.4p to 497.7p.