RTRS: FTSE gains as investors look beyond weak data
* FTSE 100 gains 1.4 percent, touches highest in a month
* Investors see further govt, BoE stimulus measures
* Miners, oils top gainers
By Simon Falush
LONDON, Dec 9 (Reuters) - Britain's top share index gained 1.4 percent by midday on Tuesday, touching its highest level in a month as investors shrugged off a raft of weak data in anticipation of further growth-boosting government action.
By 1119 GMT, the FTSE 100 .FTSE was up 61.85 points at 4,361.91 after gaining 6.2 percent on Monday, reaching its highest level since Nov 11 though still down 32.4 percent this year.
Energy stocks added most points to the index, as fears about the outlook for demand easing somewhat, with crude stabilising at around $43 per barrel.
BP (BP.L: Quote, Profile, Research, Stock Buzz), Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz), Cairn Energy (CNE.L: Quote, Profile, Research, Stock Buzz) and BG Group (BG.L: Quote, Profile, Research, Stock Buzz) added between 2 and 4.4 percent.
British industrial output fell at its sharpest pace in nearly six years in October and revisions to the previous month's data could mean the economy shrank even faster in the third quarter than originally thought. [ID:nL9594461]
But investors said the ailing health of the economy will force the Bank of England to cut rates further, and the government to increase spending once again.
"Markets have come down a long way, so expectations are very low," said Grahame Exton, investment director at Tilney Fund Management.
"The data reinforces a view that there will be more reflationary measures and more rate cuts, so people are looking through the bad news as a forerunner to more good news."
The BoE cut the base rate by 100 basis points to 2 percent last week, bringing it to its lowest level since 1951, and indicated that more might need to be done to prevent a prolonged recession.
Exton added that low rates were forcing fund managers with relatively large cash positions to look at reinvesting assets in equities.
British house sales fell to a record low and prices fell sharply, though at a slightly lower pace, the Royal Institution of Chartered Surveyors said. [ID:nLAG003139]
