Morning Markets: FTSE heads for sixth straight weekly gain

The FTSE is heading for a sixth straight weekly gain amid speculation a bailout for Greece is imminent.

In early trading the index opened up 0.9%, or 51.28 points, to 5,763.98, recouping yesterday's drop.

The index has rallied 6.6% this year as the European Union agreed to a contingency rescue package to help Greece cut its budget deficit.

"The recent market action means an external intervention may be unavoidable and could happen very soon as the situation is untenable," London-based economists including Stephane Deo at UBS AG said today, Business Week reports.

"An intervention over the weekend is a distinct possibility."

Greek bonds have plunged this week on renewed concern the country won't succeed in cutting its budget deficit, the European Union's largest.

Leaders of the nations who share the euro last month endorsed a Franco-German proposal to help Greece with a mix of International Monetary Fund and bilateral loans at market interest rates that would be triggered only if Greece runs out of fundraising options.

Elsewhere, miners are giving London's top stocks a lift, as metals prices advanced.

Xstrata gained 2.3% to £12.92 while Kazakhmys climbed 2.3% to £15.92. Copper, lead and nickel prices rallied on the London Metals Exchange.

In the US, shares recovered early falls on the back of strong retail sales figures.

The main Dow Jones index gained 29.6 points, or 0.3%, to close at 10,927.07.

Financial group American Express led the way up, rising 3.1%, followed by technology giant Microsoft, which gained 1.8%.