FTSE close: Cairn, LSE, Royal Dutch Shell up
17.20:
The FTSE 100 Index enjoyed its second straight day of gains today as City dealing rooms got into the Christmas spirit.
The blue-chip benchmark came within 50 points of its November year-high during the session, although US GDP figures showing a worse than expected performance for the world's largest economy during the third quarter of 2009 took some of the shine off the 'Santa rally'.
The London market eventually finished 34.7 points ahead at 5328.7 as traders also digested the best US homes sales in three years.
Tim Hughes, head of sales trading at IG Index, said: 'Many will be reflecting that suddenly the world seems a lot brighter place, especially when compared with the gloom of a year ago.'
The pound fared less well after disappointing official figures showed UK output contracted by 0.2% in the third quarter, weaker than the 0.1% decline or flat performance predicted by analysts.
The prospect of interest rates remaining lower for longer saw the pound dip below 1.60 dollars and 1.12 euros at one point.
But oil stocks continued their solid run as oil cartel OPEC elected to keep production unchanged in 2010 as expected, while market heavyweights GlaxoSmithKline and AstraZeneca were also in demand.
Royal Dutch Shell lifted 40.5p to 1807.5p and BP added 6.4p to 597.5p despite crude prices easing slightly on a better day for the dollar.
Among pharmaceutical firms, Glaxo added almost 2% or 25p to 1326p and AstraZeneca cheered 52p to 2889p.
Other stocks to benefit from the pre-Christmas rally included Marks & Spencer, which added 4.5p to 402.6p, and insurers Aviva and RSA Insurance - up 4.8p to 389.5p and 1.5p to 119.9p respectively.
The London Stock Exchange was also among the Footsie's leading risers, up 13p to 719p after even stronger gains earlier as investors mulled yesterday's deal to buy 60% of smaller rival Turquoise.
Citi brokers said the deal could have long-term benefits but was unlikely to ease competition significantly and maintained a sell rating on the firm.
British Airways however was among the top flight's leading casualties - down 3.9p to 189.1p - as investors wondered over the impact of severe weather disruption on Christmas travel just days after it averted a devastating strike.
The FTSE 250 Index saw strong gains in the housebuilding sector after Goldman Sachs changed its recommendation on Taylor Wimpey and Barratt Developments to buy from neutral.
Shares in Taylor lifted 1.36p to 35.7p and Barratt added 1.9p to 115.9p.
In a quiet session for corporate news, 888 Holdings shed 0.7p to 110.8p after it announced plans to buy internet rival Wink Bingo for up to around £60m.
The biggest Footsie risers were Cairn Energy up 20.2p at 339p, Royal Dutch Shell 40.5p higher at 1807.5p, Unilever up 40p at 1990p and Glaxo 25p higher at 1326p.
The biggest fallers were Fresnillo down 29p at 751,5p, Royal Bank of Scotland off 0.88p at 28.93p, BA down 3.9p at 189.1p and Kazakhmys which finished 15p down at 1246p.
16.00
The FTSE 100 index was 52.6 points up at 5,346.6.
13.30
The Footsie was 53.8 points ahead at 5,347.8 and that takes the blue-chip benchmark to within 50 points of its high for the year which was struck last month. US markets are expected to add to the high spirits later.
The pound fared less well after disappointing official figures showed GDP contracted by 0.2% in the third quarter, weaker than the 0.1% decline or flat performance predicted by analysts. The prospect of interest rates remaining lower for longer saw the pound dip below $1.60 and €1.12 at one point.
Oil stocks continued their solid run as oil cartel Opec elected to keep production unchanged in 2010 as expected.
Cairn Energy's recent rally follows the oil explorer's announcement that drilling off the coast of western Greenland will start a year ahead of schedule. Shares closed 5% higher yesterday and were up another 9.2p to 332.7p today.
Elsewhere in the sector, Royal Dutch Shell lifted 46p to 1813p and BP added 10p to 601.1p despite crude prices easing slightly on a better day for the dollar.
Among pharmaceutical firms, Glaxo added 2% or 36.5p to 1327.5p and AstraZeneca cheered 48.5p to 2885.5p.
Other stocks to benefit from the pre-Christmas rally included Marks & Spencer, which added 4.9p to 404p, and insurer Standard Life after a gain of 5.3p to 210.5p.
The London Stock Exchange was the Footsie's leading riser, up 20.5p to 726.5p as investors mulled yesterday's deal to buy 60% of smaller rival Turquoise. Citi brokers said the deal could have long-term benefits but was unlikely to ease competition significantly and maintained a sell rating on the firm.
The leading faller was British Airways - down 3.3p to 189.7p - as investors wondered over the impact of severe weather disruption on Christmas travel just days after it averted a devastating strike.
The FTSE 250 Index saw strong gains in the housebuilding sector after Goldman Sachs changed its recommendation on Taylor Wimpey and Barratt Developments to buy from neutral. Shares in Taylor lifted 1.27p to 35.61p and Barratt added 2.3p to 116.3p.
In a quiet session for corporate news, 888 Holdings lifted 0.7p to 112.2p after it announced plans to buy internet rival Wink Bingo for up to around £60m.
12.30
The FTSE 100 index is 58.5 points higher 5,352.5.
09.00
Cairn Energy set the pace for a second successive session, while market heavyweights GlaxoSmithKline and AstraZeneca also weighed in with gains.
The FTSE 100 index added almost 2% last night and was ahead by another 29.8 points to 5323.7 in the first hour of trading today.
Cairn's recent rally comes after the oil explorer said drilling off the coast of western Greenland will start a year ahead of schedule. Shares closed 5% higher yesterday and were up another 2% or 7.3p to 330.8p today.
Elsewhere in the sector, Royal Dutch Shell lifted 25.5p to 1,792.5p and BP added 5.8p to 596.9p as the latest meeting of the Opec oil cartel is expected to recommend no change in production levels for 2010.
Among pharmaceutical firms, Glaxo added 2% or 23.5p to 1324.5p and BP cheered 5.8p to 596.9p.
The FTSE 250 index saw strong gains in the housebuilding sector after Goldman Sachs changed its recommendations on Taylor Wimpey and Barratt Developments to buy from neutral. Shares in Taylor lifted 1.35p to 35.7p and Barratt added 3.9p to 117.9p.
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