Britain's blue-chip index rose 0.5 percent early on Thursday ahead of the Bank of England's rate verdict, as positive mining and oil stocks and a rise in banks outpaced weaker insurers, Reuters reported. By 0827 GMT, the commodity-heavy FTSE 100 was up 24.5 points at 5,510.6, after gaining 0.6 percent in the previous session. But the UK benchmark index has lost nearly 15 percent this year after five consecutive years of gains. Oils and energy stocks were the top sectoral gainers as they followed crude prices, which rose after dipping to three-month lows, as the market's focus returned to supply concerns in Turkey, Nigeria and Iran. BP, Royal Dutch Shell, gas producer BG Group, Cairn Energy and Tullow Oil added between 0.1 and 2.2 percent. Banks gained as Barclays' profit drop was not as steep as expected. Britain's third biggest bank reported a 33 percent fall in first-half profits as it took a 2 billion pound writedown on the value of risky assets. Barclays rose 1.6 percent, Royal Bank of Scotland added 1.4 percent, HBOS was up 0.8 percent and Lloyds TSB gained 0.7 percent. "The FTSE is stuck between 5,280 and 5,500 for a while now. If the bad news stops coming, I could see a move higher," said Simon Denham, managing director at Capital Spreads. "(But) the problem is that asset values across the globe are under pressure and in that environment, banks are going to be under pressure. And if banks are under pressure, then everybody is under pressure." Investors remained cautious because of uncertain economic and financial market conditions, with the market focusing on interest rate verdicts from key central banks for direction. The Bank of England is seen keeping rates on hold at 5 percent in its decision at 1100 GMT, as it is caught between strong inflationary pressures and the need to guard against deteriorating growth. The European Central Bank is due to announce its rate decision at 1145 GMT. Miners gained with a rise in metals prices. BHP Billiton, Anglo American, Vedanta Resources, Lonmin, Antofagasta, Eurasian Natural Resources and Rio Tinto rose between 1.3 and 6.3 percent. Xstrata rose 1 percent. The miner unveiled a $10 billion takeover bid on Wednesday for the world's third-biggest platinum producer, Lonmin. South Africa-focused Lonmin said it would vigorously contest the bid approach from Xstrata. Lonmin shares were down 0.4 percent.
