Blue-chips hold firm on stronger miners

The FTSE100 rose in early trade as gains in commodities stocks offset a fall in banks and a slump on Whitbread shares.

The blue-chip index was up 0.19% to 5438.34 at 0933GMT on Tuesday.

Banks were weaker, led by Barclays, as Nomura downgraded its pan-European banking sector rating to “neutral” from “bullish.”

Whitbread was the biggest laggard, losing as much as 5.5% after the UK’s biggest hotel operator said sales growth slowed in the third quarter as tough economic conditions kept customers away from its Premier Inn hotels and Costa Coffee shops.

Petrofac topped the leader-board after the UK oilfield services and engineering provider said it will beat its profit target in 2011 as it works through a record order backlog.

Miners received a boost after Australia lifted its forecast for iron ore exports by 2.4% to a record 460m tonnes in 2011/12 as producers dig more mines to feed a growing hunger in China for imported ore to make steel. Kazakhmys, Lonmin and Rio Tinto were all up around 1.4%.

AIR publishes a weekly magazine. Subscriptions are free at www.aireview.com.au