FTSE close: Vodafone and BG lead the rally
17.05 (close)
Taking stock: Shares have had to cope with dismal economic data.
President Barack Obama's State of the Union address buoyed the London market today as investors cheered moves to support growth in the world's biggest economy.
The FTSE 100 Index closed 51.5 points higher at 5969.2 after the US President's promise to create jobs and boost growth.
Mr Obama called for the lowering of the corporate tax rate as part of efforts to revive the US economy and said there would be a five-year freeze on domestic discretionary spending to cut national debt.
His comments helped switch attention away from yesterday's dismal UK fourth quarter gross domestic product figures, although Wall Street saw a more mixed start to trading after weak corporate earnings reports.
The pound recovered strongly after the release of Bank of England minutes showed policymaker Martin Weale joined fellow rate-setter Andrew Sentance in calling for a 0.25% rate hike to rein in inflation. Sterling was up against the dollar at 1.59 and up against the euro at 1.16.
Market heavyweight Vodafone was among those on the rise after solid results yesterday from Verizon Wireless, which is 45% owned by the British mobile phone giant. Vodafone shares rose 1.2p to 180.7p.
Temporary power firm Aggreko topped the risers board after an upbeat broker note from Goldman Sachs. Shares surged more than 5% or 75p to 1485p.
Oil firm BG was not far behind after an exploration venture in which it has a 30% stake discovered "high quality" oil in deep waters at an offshore field in Brazil. Shares jumped 45.5p to 1372p, a rise of 3%.
It was joined by a raft of miners as the wider market bounced back from declines seen after yesterday's contraction in UK economic output.
Antofagasta led the sector higher with a 46p rise to 1436p.
A downgrade for BP had the reverse effect on the oil giant, with shares dropping 5.3p to 491.7p.
Outside the top flight, WH Smith was higher despite the retailer announcing a further deterioration in like-for-like sales.
Chief executive Kate Swann said the retail chain remained on track to meet forecasts due to its focus on costs and more profitable product ranges. Shares were 2.1p higher at 482.9p.
Embattled sportswear retailer JJB Sports fought back from initial losses after the FSA hit it with a £455,000 fine for failing to disclose full deal costs when it bought two smaller rivals in 2007 and 2008. Shares were flat at 4.6p.
Irn-Bru maker AG Barr moved ahead, up 34p to 1111p, after it said sales so far in the fourth quarter were up 3% despite disruption from last month's snow.
The biggest Footsie risers were Aggreko up 75p at 1485p, Weir ahead 68p at 1686p, IMI up 31.5p at 917p and BG ahead 45.5p at 1372p.
The biggest Footsie fallers were Scottish & Southern down 37p at 1178p, Randgold Resources off 116p at 4739p, Compass down 7.5p at 561p and Capital Shopping Centres off 4.9p at 377.1p.
16.00:The Dow Jones edged above the 12,000 mark for the first time since June 2008 today. But it has since fallen back to trade 21.6 points higher at 11,998.8.
Obama's speech and better than expected new home sales have lifted the mood across the Atlantic.
The FTSE 100 is up 74.6 points at 5,992.3 as the end of the session approaches.
14.45:
The FTSE has plateaued this afternoon, sticking 66.7 points higher at 5984.47.
In the US, the Dow Jones is flat, just 1.6 points off at 11,975.56.
One of the movers today is WH Smith. Today it reported falling sales at both its high street and travel hub outlets, but described its performance as 'resilient' considering the harsh weather.
Like-for-like sales in its high street arm slid 6% in the 21 weeks to 22 January, and 7% in the last eight weeks of that period.
Its stock has risen 2p to 482.8p in trading so far today. There's more on that here.
12.40:
Lunchtime update - The FTSE 100 is still riding high, up 80 points at 5,997.7.
Miners are benefiting as investors recover their nerve after yesterday's shock news of a contraction in UK economic output.
Anglo American led the sector higher with a 94.5p rise to 3169.5p. Xstrata was up 40.5p at 1,432.5p.
Temporary power firm Aggreko also hit the risers board after an upbeat broker note from Goldman Sachs. Shares lifted 52p to 1462p.
A broker downgrade for BP had the reverse effect on the oil giant, with shares dropping 4.3p to 492.7p.
Elsewhere on the markets, embattled sportswear retailer JJB Sports was in the red, down 2% or 0.1p to 4.5p as the FSA hit it with a £455,000 fine for failing to disclose full deal costs when it bought two smaller rivals in 2007 and 2008.
It was a better day for Irn-Bru maker AG Barr, ahead 27p to 1104p, after it said sales so far in the fourth quarter were up 5% despite disruption from last month's snow.
US futures trading points to a higher opening on the Dow Jones as investors react to Obama's State of the Union speech and pore over the latest fourth quarter earnings results.
The Federal Reserve is due to make a statement later that is expected to mention improving US economic prospects.
10.30:
The FTSE 100 made ground after a pro-business tax cut in the US was announced, with Vodafone and BG Group setting the pace.
A pledge by US president Barack Obama to create jobs and spur growth in the world's biggest economy helped give a lift to shares in London today.
His comments helped switch attention away from yesterday's dismal fourth quarter output and the Footsie was again threatening 6,000 - 71.91 points higher at 5989.62 by mid-morning.
In his annual State of the Union speech, Mr Obama called for the lowering of the corporate tax rate as part of efforts to revive the US economy.
Market heavyweight Vodafone led the recovery with a rise of 5p to 184.5p, while insurer Prudential weighed in with a gain of 17p to 1446p.
Oil firm BG topped the risers board after an exploration venture in which it has a 30% stake discovered 'high quality' oil in deep waters at an offshore field in Brazil. Shares jumped 42p to 1368.5p, a rise of 3%.
Outside the top flight, shares in WH Smith were 1% higher despite the retailer announcing a further deterioration in like-for-like sales.
Chief executive Kate Swann said the retailer remained on track to meet forecasts due to its focus on costs and more profitable ranges. Shares were 6.8p higher at 487.6p.
The pound at 10am was $1.5814 compared to $1.5804 at the previous close. Against the euro, the pound was at €1.1535 compared to €1.1596 at the previous close.
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