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FTSE 100 seen higher as UK house prices climb 1.8% in April, commodities rise

26th Apr 2010, 7:29 am FTSE 100 seen higher as UK house prices climb 1.8% in April, commodities rise

The FTSE 100 is seen 0.6% higher today after tacking on 1% on Friday, driven by a strong performance from banks, energy and mining companies amid a recovery in commodity prices.

Cruise operator Carnival Corp (LSE: CCL) and plumbing and heating equipment manufacturer Wolseley (LSE: WOS) took the lead with gains of 5.9% and 5.4% respectively. InterContinental Hotels Group (LSE: IHG) and retailer Kingfisher (LSE: KGF) followed, tacking on more than 4%. Airline British Airways (LSE: BAY), gold miner Randgold Resources (LSE: RRS) and Royal Bank of Scotland (LSE: RBS) added more than 3.5%.

Just two FTSE 100 constituents shed more than 1% with chipmaker ARM Holdings (LSE: ARM) sliding 1.7% in a correction after strong gains earlier in the week on positive results from Apple and insurer Aviva (LSE: AV) moving down 1.3%.

US markets also were in buying mode on the last day of trading. The Dow Jones Industrial Average climbed 0.6%, the broader S&P 500 index added 0.7% and the technology heavy NASDAQ composite advanced 0.45%.

Asian shares rallied on Monday. Hong Kong’s Hang Seng advanced 1.6%, Japan’s benchmark Nikkei 225 surged 2.1%, South Korea’s KOSPI was 0.95% higher. China’s Shanghai Composite Index and Australia’s S&P/ASX 200 went against the tide, shedding 0.2% and 0.5% respectively.

Commodities

Oil prices were higher today. June Brent Crude improved to US$87.47/barrel, while US light, sweet crude moved up to US$85.27/barrel.

Precious metal followed. Gold rose to US$1,158/oz, while silver and platinum climbed to US$18.38/oz and US$1,749/oz respectively.

Base metals also improved. Copper and nickel advanced to US$3.53/lb and US$12.32/lb, while zinc moved up to US$1.08/lb.

UK prices were reported to have risen by an annual rate of 1.8% in April. No other notable economic data is due out today.

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