FTSE close: Footsie shrugs off economic gloom
A shock fall in UK output during the third quarter of 2009 did little to quell the advance of the London market today.
The FTSE 100 index actually reached a new 13-month high near 5300 at one stage before giving back some of the gains to close 35.2 points ahead at 5242.7.
Despite the 0.4% decline in GDP, markets were focused on strong quarterly trading figures from bellwethers of consumer demand, such as Amazon, in the US.
IG Index's Anthony Grech said: 'With today's surprise announcement suggesting that interest rates are likely to remain suppressed for some time to come, investors still seem happy to take the bet that shares are still going to offer amongst the best returns.'
The real impact of the figures came in the foreign exchange markets, as the pound lost ground against the euro and the dollar with a extension of the Bank of England's £175bn quantitative easing programme becoming more likely. The pound dropped below 1.09 euros and slid more to 1.63 against the dollar.
›› Read more on the GDP shock.
Lloyds Banking Group was higher as the figures appeared to revive speculation over its likely participation in the Government's asset protection scheme, limiting the amount of cash to be raised from shareholders.
Shares in the part-nationalised bank were up more than 1% or 1.43p to 96.23p, while Royal Bank of Scotland added 1.57p to 47.17p - almost 4%.
Miners drove the market's latest rally with Vedanta Resources up 72p at 2358p and Kazakhmys 42p higher at 1294p.
Another healthy set of weekly trading figures from John Lewis Partnership lifted retail stocks, with Next ahead 33p at 1870p and Argos owner Home Retail Group 4p stronger at 305.6p.
Elsewhere in the consumer sector, Unilever shares were 25p higher at 1866p and cruise ship operator Carnival lifted 21p to 2082p.
Insurance firms were also in favour after Aviva added 2.1p to 431.2p and Prudential topped the risers board with a gain of 31p to 633.5p.
In a quiet session for corporate news, shares in BSkyB were in positive territory early on after it reported a 40% leap in first quarter profits and said net customer additions were better-than-expected at 94,000 in the three months to September 30.
Shares were 2% higher at one stage before the gains faded to leave the satellite broadcaster 6.5p off at 553p.
Outside the top flight, doorstep lender Provident Financial held steady after it forecast further profits growth this year and said it had weathered the recession because of its cautious lending policies.
However, the Bradford-based lender said any pick-up in activity was unlikely until the spring at the earliest. Shares were down 9p to 951p.
The biggest Footsie risers were Prudential up 31p at 633.5p, Autonomy ahead 63p at 1444p, Anglo American up 95p at 2380p and Xstrata up 36p at 1012p.
The biggest Footsie fallers were BT down 4.4p at 135.3p, Bunzl off 13p at 651.5p, 3i down 5.6p at 296.3p and Cable & Wireless off 2.6p at 141p.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Dean Dunham: Entitled to comparable replacement concert tickets?
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Land Rover unveil newest all-electric Range Rover SUV
- Blue Whale fund manager on the best of the Magnificent 7
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Mini Cooper SE: The British icon gets an all-electric makeover
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- How to invest for income and growth: SAINTS' James Dow
- Mercedes has finally unveiled its new electric G-Class
- Should the Bank of England have cut interest rates...
- How these four private equity trusts could help you cash...
- BHP boss to meet his counterpart at takeover target Anglo...
- Jaguar Land Rover posts its biggest profit since 2015...
- British Airways owner IAG set for bumper summer
- Footsie hits new high as economy roars back
- ALEX BRUMMER: UK second to United States among G7 richest...
- Ikea pushes back opening of its Oxford Street store to...
- MARKET REPORT: S4 Capital shares soar as Sir Martin...
- 86-year-old Peter's woes with a faulty smart meter that...
- Households with emergency savings pots rises...
- My favourite 20 new cars for under £20,000 - by the...
- SMALL CAP MOVERS: Light Science Technologies sales flourish
- The government is asking motoring enthusiasts for help...
- Rightmove expects weaker ad revenue growth as more...
- BUSINESS LIVE: UK GDP grows 0.6%; IAG profits take off;...
- How criminals could use AI to scam Britons - and what can...
- BA owner IAG profits climb more than sevenfold