FTSE-100 closes near month high; miners, insurers rise

Britain's FTSE-100 closed just shy of a one-month high on Monday as lower oil prices and a brighter economic picture brought investors back into volatile cyclicals like insurance and mining stocks.
As US and Asian markets rallied and US crude oil futures stayed well below last week's historic highs, the FTSE-100 closed up 37.2 percent, or 0.84 percent, at 4,491.6, just below the morning's high mark of 4,496.3.
"The news-flow has improved and now we get a move back up above the midpoint of the trading range," said Tim Rees, director of investment strategy at Insight Investment.
The market has gained mileage from Friday's news of stronger-than-expected job growth in the United States.
UK shares, which have slightly outperformed the Dow Jones Industrial average this year, hung back from a strong rally in US and Asian markets on Monday, however, and traders said the move was not backed by particularly heavy volume.
Chilean copper miner Antofagasta was the day's top blue chip gainer even though it may be excluded from the FTSE-100 index in this week's rejig. It closed up five percent.
BHP Billiton climbed 3.1 percent and Anglo-American rose 2.4 percent. Traders said they were recovering after a Chinese interest rate scare that threatened to hurt metals demand in the potentially vast Chinese market.
Traders said investor perceptions of Chinese potential were ever-shifting and the miners were likely to see more down days.
"The Chinese concerns are back every month, and they will get hit again this month," one trader predicted.
Financial stocks, poised to benefit from a rising stock market and stronger economy, were the day's popular bet for investors who put faith in steady economic growth.
Insurer Royal & Sun Alliance led gains in the financial sector with a 2.9 percent rise, and Prudential, in focus because of speculation on possible news soon on its efforts to sell Internet bank Egg, rose 1.9 percent.
As sources said UK retail tycoon Philip Green was preparing to meet Marks & Spencer shareholders to solicit support for a revised take-over bid, shares in the high street icon rose 1.1 percent.
The spectre of high oil prices remained, however, as EasyJet warned its profits would be hit if fuel prices remained at current levels or higher. It tumbled 18.6 percent.
But Intercontinental Hotels rose 3.7 percent, with traders citing interest in leisure stocks after MGM Mirage's $4.85 billion bid for Mandalay Resort.