FTSE up as credit fears ease; rate verdicts eyed

The FTSE 100 .FTSE index of Britain's leading shares edged up on Monday after U.S. President George W. Bush and Federal Reserve Chairman Ben Bernanke talked about tackling the credit problem that has hit financial markets.

Investors interpreted Bernanke's remarks at a meeting of central bankers on Friday as a sign the bank would cut rates at its September meeting, sparking a 1 percent rally on Wall Street.

Meanwhile U.S. President George W. Bush proposed measures to help homeowners avoid defaulting on risky mortgages.

At 0744 GMT the index was up 8.4 points, or 0.1 percent, at 6,311.7.

But with little on the corporate or economic calendar this session and with U.S. markets closed for the Labor Day holiday, UK investors may struggle to find direction.

"It's going to be obviously quiet because of the U.S. (holiday)," said Lawrence Peterman, investment director at Eden Financial. "We've had a good bounce off the lows in the last week and I think there might be some consolidation now to take stock as to what has really happened out there in the last few weeks."

"(The Bernanke/Bush comments) always helps. Everyone is now expecting a rate cut in the U.S., that's factored into the market." Traders are also looking ahead to interest rate verdicts from both the European Central Bank (ECB) and Bank of England (BoE) on Thursday.
Source : http://today.reuters.com