* FTSE rises 0.6 percent
* Miners up, Anglo American gains on DB note
* Luxury goods firms higher after Burberry, LVMH impress
By David Brett
LONDON, April 19 (Reuters) - Britain's top shares bounced
back from sharp falls in the previous session on Tuesday, led by
oversold commodity stocks and luxury goods firm Burberry after a
trading update.
By 1053 GMT, the FTSE 100 <> was up 32.75 points, or
0.6 percent, at 5,902.83, having ended Monday down 2.1 percent
at 5,870.08, its lowest close since March 23, after ratings
agency S&P cut its U.S. credit outlook to negative.
Bill McNamara, a technical analyst at Charles Stanley, said
the short-term uptrend had come to an end, and the index would
need to hold above 5,908 -- last week's first key support level
-- to have any technical significance.
"At the very least this signals that the FTSE has entered a
phase where choppy trade is likely to become the norm, and
that's not so surprising, given the many external factors that
investors are now obliged to take account of."
London's blue chips rallied as investors bought back in on
the dips after a flight from risk on Monday, with miners and
integrated oils the top performing sectors.
Paul Mumford, who manages a 25-million-pound ($40.6 million)
fund at Cavendish Asset Management, said the market fall was a
"knee-jerk" reaction thar presented fresh buying opportunities.
Precious metals miner Fresnillo <FRES.L> gained 2.4 percent
as gold <XAU=> hovered near all-time highs.
India-focused miner Vedanta <VED.L> rose 1.6 percent, and
Cairn Energy <CNE.L> climbed 1 percent as Vedanta snapped up an
11 percent stake in Cairn India <CAIL.NS>, a move that
guarantees the miner a majority stake in the Indian unit despite
an expected tepid response to its open offer. []
Anglo American <AAL.L> was up 2.2 percent on a bullish note
from Deutsche Bank in which the broker noted the miner's
exposure to diamonds, "the most defensive mining commodity".
BURBERRY BEAT
Burberry <BRBY.L> rose 5.9 percent after the luxury group
said fourth-quarter sales beat forecasts and would push
full-year profit to the top end of expectations. []
French peer LVMH <LVMH.PA> also boosted investor sentiment
when it beat first-quarter sales expectations.
Marks & Spencer <MKS.L> added 1.5 percent as Citigroup
raised its recommendation on the retailer to "buy" from "hold".
Tesco <TSCO.L> fell 1.2 percent after the world's
third-largest retailer fell short of its expectations in a tough
home market. []
Engineers IMI <IMI.L> and Weir <WEIR.L> put on 2.3 and 1.8
percent, benefiting from an upbeat buzz on the sector from
brokers such as Bank of America Merrill Lynch and RBC Capital
Markets.
Banks <.FTNMX8350> were mixed as they remained hamstrung by
global sovereign debt concerns and ahead of U.S. peer Goldman
Sachs's results at around 1200 GMT.
U.S. stock index futures pointed to a slightly lower open on
Wall Street on Tuesday, with U.S. March housing starts numbers
due at 1230 GMT.
(Editing by Will Waterman)
($1=.6163 Pound)
