FTSE Close: BA, easyJet up; J Sainsbury down
17.00 (close)
The FTSE 100 Index moved closer to the 5700 mark today as investors shook off disappointing jobs data in America.
London's Footsie is trading at levels not seen since late April - up 45.6 points to 5681.4 - on renewed hopes over the global recovery, despite news of the first cut in US private sector jobs for seven months in September.
The Dow Jones Industrial Average in America also overcame a weak opening as the autumn stock market rally continues apace.
Sentiment was lifted as investors expected the US jobs report would add to prospects for more action to further stimulate the economy from the Federal Reserve.
The Bank of Japan unexpectedly cut interest rates yesterday, supporting the view that other governments will act further to bolster an uncertain economic recovery.
UK policymakers decide on interest rates tomorrow amid mounting pressure to take action to help the recovery, although they are not expected to change rates or extend Quantitative Easing this month.
The pound weakened ahead of tomorrow's rates decision, down to 1.14 euros and just holding firm at $1.59.
The top flight benefited from another decent session for mining stocks after the improved recovery hopes lifted base metal prices and crude oil increased to around 83 US dollars a barrel.
Anglo American rose 110.5p to 2752p, Kazakhmys advanced 56p to 1483p and Lonmin was up 4% or 67p at 1790p.
There was also a 5% gain for British Airways as it launched its transatlantic tie-up with Iberia and American Airlines. Shares were up 11.5p to 266.1p, which added to the 6% rise seen yesterday after it posted better-than-expected traffic figures.
BA's rally was given further momentum by low-cost rival easyJet, which raised its profits forecast and said the cost of disruption to European airspace caused by the Iceland volcano was likely to be less than expected.
EasyJet shares topped the FTSE 250 Index risers board with a gain of 12%, or 46.4p to 433.3p.
Elsewhere in the second tier, shares in Dunelm soared after the homewares chain continued to defy forecasts with a surprise rise in like-for-like sales.
The firm, which has 106 stores under the Dunelm Mill name, reported growth of 2.1%, beating City expectations that its sales could fall by as much as 5%. Shares were up 5% or 22.4p at 427.6p.
Back in the top flight, shares in supermarket chain Sainsbury's fell, despite better-than-expected sales figures for the second quarter.
The group, which was down 2.5p at 387.1p, posted like-for-like sales growth of 2.9%, helped by the success of its non-food offering, but was cautious over its outlook in the face of a "challenging" consumer environment.
Among other major Footsie losers was software group Autonomy Corporation, after it warned it will miss market expectations for its full-year revenue by around 3%, triggering a 16% or 301p drop in shares to 1551p.
The biggest Footsie risers were Man Group ahead 10.6p to 237.7p, Essar Energy up 22.1p to 503.5p, British Airways up 11.5p to 266.1p and Anglo American up 110.5p to 1752p.
The biggest Footsie fallers were Autonomy Corporation down 301p to 1551p, Admiral Group off 74p to 1590p, Arm Holdings down 10.7p to 389.3p and Centrica off 5.2p to 321.8p.
12.30
Miners area leading gains for the Footsie, which is 31.1 points up at 5,666.9. Antofagasta is up 4% or 53p at 1322p, Xstrata 44.5p to 1284.5p and Kazakhmys has now advanced 51p to 1478p.
Shares in Dunelm soared after the homewares chain continued to defy forecasts with a surprise rise in like-for-like sales. The firm, which has 106 stores under the Dunelm Mill name, reported growth of 2.1%, beating City expectations that its sales could fall by as much as 5%. Shares were up 7% or 26.3p at 431.5p.
Among the major Footsie losers were software group Autonomy Corporation, after it warned it will miss market expectations for its full-year revenue by around 3%, triggering a 16% or 294p drop in shares to 1558p.
TUI Travel also failed to hold on to gains triggered by yesterday's strong summer trading update, after investment bank UBS downgraded the firm from buy to neutral. Shares slipped 5.6p to 220.3p.
09.30
Healthy figures from the US services sector boosted Wall Strete last night and helped London's top shares to more gains today.
With the Dow Jones Industrial Average closing nearly 2% higher last night, the FTSE 100 index was able to follow up yesterday's strong session with a further rise of 46 points to 5,681.7 - its best level since late April.
The Bank of Japan unexpectedly cut interest rates on Tuesday, supporting a view that other governments will act further to bolster an uncertain economic recovery, and that boosted world commodity prices.
'Central banks are moving towards additional stimulus in the United States and Japan, but as important, growth data has been good relative to expectations and there's been an improving trend,' said Ronan Carr, European equity strategist at Morgan Stanley.
Mining stocks benefited from rising metal prices: gold hit a record high yesterday and copper rose to its highest since July 2008. Kazakhmys was the biggest riser, 59p up at 1,486p.
There was also a gain of 3% for British Airways, which added to the 6% rise seen yesterday after it posted better-than-expected traffic figures.
BA's rally was given further momentum by low-cost rival easyJet, which raised its profits forecast and said the cost of disruption to European airspace caused by the Iceland volcano was likely to be less than expected.
EasyJet shares topped the FTSE 250 Index risers' board with a gain of 8%, or 32.5p to 419.4p.
Back in the top flight, shares in supermarket chain J Sainsbury were flat despite better-than-expected sales figures for the second quarter. The group, which was down 3.6p at 386.2p, posted like-for-like sales growth of 2.9%, helped by the success of its non-food offering.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Fiat pledges to cease grey car production as they launch new EV
- How to invest for income and growth: SAINTS' James Dow
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Mini celebrates the release of brand new all-electric car Mini Aceman
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- Blue Whale fund manager on the best of the Magnificent 7
- Mercedes has finally unveiled its new electric G-Class
- Manual cars may be near extinction in five years as the...
- British self-driving tech start-up Wayve raises more than...
- MPs set to grill FCA boss Nikhil Rathi on 'name and...
- House prices to jump 2.5% as economy brightens and...
- Bailey must lead the way on interest rate cuts, says ALEX...
- BP profits hammered by lower energy prices
- Retail sales hit by wet weather and early Easter bank...
- How YOU can cash in on the stock market 'feeding frenzy':...
- BUSINESS LIVE: BP profits slump 72%; Wayve raises more...
- Attacks in the Red Sea are escalating, warns shipping...
- House prices flat in April says Halifax, but buyers seek...
- First Direct relaunches £175 switching deal for new...
- Car makers slash EV sales forecast for 2024 as public...
- Octopus Energy valuation grows to more than £7bn as...
- IWG continues cutting debts ahead of potential US listing
- I'm jealous of my husband's dead ex-wife - she was rich...
- Investors are pulling money out of UK funds on a worrying...
- Billionaire Czech Sphinx bidding for Royal Mail 'would...