Britain's leading share index ticked higher in early trade on Thursday, modestly extending the previous session's advance thanks to strength in banks and oil majors, although weak miners limited the gains, according to Reuters. At 0805 GMT, the FTSE 100 index was 9.95 points, or 0.1 percent higher at 5,806.20, back above the 5,800 level. The blue-chip index gained 34.59 points, or 0.6 percent, on Wednesday to end at 5,796.25, its highest finish in 22 months. "Markets are looking a bit lacklustre after recent gains," said Sam Wright, a trader at Spreadex. "We're just consolidating in the absence of much fresh direction as investors pause for breath ahead of further U.S. earnings news later in the week." Banks led the blue-chips higher after sentiment for the sector got a boost from Wednesday's above-forecast earnings from U.S. peer JPMorgan Chase. Bank of America continues the sector reporting season on Friday. Royal Bank of Scotland, Lloyds Banking Group, Barclays, HSBC and Standard Chartered put on 0.3 to 1.8 percent. Firmer energy issues also gave the blue-chips a lift, with positive comment from Credit Suisse supporting the sector. The broker raised target prices across the sector for both integrated oils and oil explorers and upped its rating for BP to "outperform" from "neutral". BP shares added 0.3 percent, while BG Group, Tullow Oil and Cairn Energy gained 0.2 to 1.4 percent. Royal Dutch Shell bucked the firmer sector trend, losing 0.5 percent. Weak miners were the main counterweight for the FTSE 100 index with the sector giving back some recent gains as base metal prices only edged higher after some strong Chinese data. China's annual economic growth quickened in the first quarter to 11.9 percent, the fastest pace since 2007, benefiting from a low base of comparison last year and the momentum from massive stimulus packages. While the data showed the continued strength of the major commodity consumers, it also raised some concerns that China might accelerate moves to cool down its economy. Randgold Resources was the top blue-chip faller, off 1.2 percent, while BHP Billiton, Anglo American, Xstrata and Rio Tinto shed 0.4 to 1.1 percent. Rio Tinto slightly raised its production guidance for iron ore after posting a 39 percent jump in first-quarter output driven by Chinese demand and recovery in the West. NO CREDIT Experian was a notable FTSE 100 faller, down 1 percent after the credit information firm's trading update failed to inspire. Weakness in selected defensive issues was also a feature among the blue-chip fallers. British American Tobacco and Imperial Tobacco fell 0.7 and 0.3 percent respectively, while drinks firm Diageo lost 0.7 percent. Cruise-operator Carnival was the top FTSE 100 riser, up 2.8 percent after Morgan Stanley hiked its target price and repeated its "overweight" stance. Price targets hikes also gave a lift to Serco Group and WPP Group, up 1.6 and 1.3 percent respectively. On the macroeconomic front, British consumer morale last month suffered its biggest fall since July 2008, wiping out all the gains since the start of the year due to a sharp drop in optimism about the next six months, a Nationwide Building Society survey showed. No other domestic data are due for release on Thursday, so investors will look across the Atlantic. U.S. weekly jobless claims are due at 1230 GMT, together with April's Empire State Index, while the Philly Fed index is due at 1400 GMT.
