London shares push higher in early deals after late Wall Street rally

London shares push higher in early deals after late Wall Street rally

	Published : Tue, 23 Oct 2007 08:13 By : Agencies Print this Story

LONDON (Thomson Financial) - UK blue chips pushed higher in opening deals gains this morning, bouncing back after yesterday's declines supported by a late rally in to the blue on Wall Street, with miners driving the FTSE 100's advance.

At 8.10 am, the FTSE 100 index was 56.3 points higher at 6,515.6, with all the broader FTSE indices also firmer.

Early volume was solid with 96 mln shares changing hands in 16,157 deals.

Overnight on Wall Street, the DJIA, having been 60 points lower when London markets closed yesterday, ended 44.95 points higher at 13,566.97 after a volatile session following Friday's 300-plus point plunge.

The broader US stock indices also finished higher, with the S&P 500 index ending up 5.70 points at 1,506.33, and the Nasdaq composite index closing 28.77 points higher at 2,753.93 as tech issues led the New York recovery.

Apple shares stood out in Wall Street trade, adding over 2 pct in value with investors optimistic about its fourth quarter earnings report posted after the New York bell.

The optimism proved well-founded as the iPod and iPhone maker saw its fiscal fourth-quarter EPS jump 67 pct to 101 cents, up from 62 cents a year earlier and easily beating Wall Street expectations for 86 cents.

Apple shares put on another 5 pct in value in after-hours trade.

In Tokyo, the Nikkei 225 index ended 12.11 firmer at 16,450.58, well below earlier highs as investors exercised some caution ahead of the release of quarterly earnings by major companies this week, including Sony.

But in Hong Kong, the Hang Seng at midday was up 789.05 points at 29,162.68 recouping a big chunk of yesterday's 1,000 points slide on bargain-hunting and with Wall Street's rally.

Meanwhile world oil prices slipped further in Asia on Tuesday as worries over slowing economic growth in the US shadowed the market.

New York's main oil futures contract, light sweet crude for delivery in December, was 26 cents lower at 85.76 US dollars a barrel in late morning trade.

In London, gains in heavyweight mining issues helped fuel the FTSE 100 bounce back supported by solid production news from BHP Billiton and positive news on Chinese growth.

A senior research official with China's National Development and Reform Commission (NDRC) predicted that GDP in the country is likely to grow by around 11.5 pct in 2007 and about 11.0 pct in 2008.

BHP Billiton issued its Q1 production report overnight in Sydney.

The world's largest diversified resources group said output at its iron ore mines in Western Australia and at key coal projects in Australia and Colombia reached record levels in the first quarter to September.

And BHP Billiton said strong demand underpinned the record production as capacity was increased.

In reaction, BHP Billiton shares added 27 pence at 1,791, while Antofagasta added 806 pence at 25-1/2, Vedanta gained 47 pence at 2,101, and Rio Tinto took on 78 pence at 4,149.

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