* FTSE up 2 percent as Fed introduces $600 billion stimulus
* Financials gain, Man Grp results, BoE holds rates, QE
* Rolls Royce slides on engine concerns, flights grounded
By David Brett
LONDON, Nov 4 (Reuters) - Britain's top shares closed at their highest in nearly 29 months on Thursday as investors responded bullishly to the U.S. Federal Reserve's decision to pump more cheap money into the economy to boost flagging growth.
Financial stocks, led by Man Group
The FTSE 100 <.FTSE> closed up 113.82 points or 2 percent at 5,862.79, its highest since June 9, 2008, after the Fed committed to buy $600 billion in government bonds to support a struggling U.S. economy on Wednesday.
"The market's reacted positively to QE and there's a risk on environment, with data out of the U.S. better, the concerns about a slowdown are less pronounced," said Phil Poole, global head of macro investment strategy at HSBC Global Asset Management.
There was good economic news from the United States on Thursday where non-farm productivity rose faster than expected in the third quarter, while unit labour costs fell.
New U.S. claims for unemployment benefits rose more than expected last week, underlining the persistent weakness in the jobs market which is threatening the recovery. [ID:nN03293386] [ID:nN04207851]
Financial stocks were top gainers. The world's largest
listed hedge fund firm Man Group
Banks <.FTNMX8350> provided much of the index's strength.
SHOWING THEIR METAL
Miners <.FTNMX1770> rose in tandem with metals, which benefited as the dollar index <.DXY> fell to an 11-month low after the Fed's announcement.
Anglo-Australian miner BHP Billiton's
Energy <.FTNMX0530> shares were higher helped by a 1.7
percent spike in the price of crude
Elsewhere, Unilever
On the downside, Wm Morrison Supermarkets
Next
Rolls Royce
Experian
The European Central Bank kept its main interest rate on hold at a record low of 1.0 percent for the 18th month running on Thursday, as expected by economists.
Momentum underlying the euro zone's economic recovery remains positive but uncertainty about the outlook still prevails, European Central Bank President Jean-Claude Trichet said. (Editing by Jon Loades-Carter)