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Britain's FTSE boosted by commodities rally

Fri, 03rd Jun 2016 15:52

* FTSE 100 up 0.4 percent at close

* U.S. jobs data disappoints

* Gold miners lead rally in commodities

* Indivior jumps after winning ruling (Adds detail, updates prices at close)

By Kit Rees and Alistair Smout

LONDON, June 3 (Reuters) - Britain's top share indexadvanced on Friday as commodity-related stocks rebounded, withprecious metals miners in demand after a disappointing U.S. jobsreport.

U.S. jobs data showed that the U.S. economy created thefewest number of jobs in more than five years in May, withnon-farm payrolls rising by only 38,000 jobs last month.Economists polled by Reuters had forecast a rise of164,000.

Such weakness in the U.S. labour market could make it moredifficult for the U.S. Federal Reserve to hike interest rates.

"This is a really bad figure and there will beconsequences," Ken Odeluga, market analyst at City Index, said,adding that he expected the Federal Reserve to soften itshawkish tone.

Britain's FTSE 100 was up 24.02 points, or 0.4percent, at 6,209.63 points at its close, having reduced gainsmade earlier in the session.

Precious metals miners were in demand as investors soughtsafe-haven assets with Fresnillo and Randgold Resources rallying 7.6 percent and 6.8 percent respectively.

Mining shares gained 3.8 percent, the sector'sbiggest daily gain in a month and half, and energy shares were also up 1.2 percent as oil and copper pricesrose.

Brent crude climbed above $50 a barrel to near seven-monthhighs, despite an OPEC meeting that yielded no deal on a supplyceiling. Investors took heart from Saudi Arabia's pledge not toflood the market and from a decline in U.S. crude supply.

Oil majors BP and Shell were up 1.5 percentand 0.9 percent respectively.

"The perkiness of its commodity sector (is) the main driverof growth this Friday... despite another display of OPEC'sineffectiveness on Thursday," Connor Campbell, financial analystat Spreadex, said in a note.

UK mid-cap Indivior surged over 36 percent afterthe pharmaceuticals company won a ruling to keep genericversions of Suboxane off the U.S. market until 2024, accordingto a media report.

British supermarket stocks were the biggest fallers on theblue chip index, however, with Tesco, Sainsbury and Morrison all down between 3.8 percent and4.4 percent respectively. One trader cited a Bloomberg sharereport indicating Wal-Mart's Asda plans to lower prices.

ADVISORY- Reuters plans to replace intra-day European and UKstock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia formatfrom 0600 London time through the 1630 closing bell, it willinclude the best of our market reporting, Stocks Buzz service,Eikon graphics, Reuters pictures, eye-catching research andmarket zeitgeist. Breaking news and dramatic market moves willcontinue to be alerted to all clients and we will continue toprovide a short opening story and comprehensive closing reports.

If you have any thoughts, suggestions orfeedback on this, please email mike.dolan@thomsonreuters.com.

Mike Dolan, Markets Editor EMEA. (Editing by Richard Balmforth)

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