Footsie climbs to 14-month high
London's stock market recovery continued apace today as a 1.6 per cent gain took the FTSE 100 Index to a new 14-month high.
The Footsie closed up for the fourth straight session - ahead 86.3 points at 5382.7 - bolstered by global economic cheer and big rises among mining stocks thanks to a surge in metals prices.
The blue chip share index is now within touching distance of its level seen last autumn just before the Lehman Brothers bankruptcy sent stocks tumbling.
Confidence has been returning to shares worldwide in recent months, with America's Dow Jones Industrial Average also rising more than 100 points in early trade today thanks to optimistic economic indicators.
Key US retail sales - seen as a crucial growth driver - rose 1.4 per cent in October from the previous month.
Upbeat news from Japan had already put markets on the front foot after figures showed the Japanese economy expanded at a faster-than-expected annual rate of 4.8 per cent in the third quarter - the second straight quarter of expansion and the biggest rise since 2007.
Tim Hughes, head of sales trading at IG Index, said: "The major indices today seem to have signalled that the eight-month recovery for share prices is not over and this has spurred traders to get their buying hats back on.
"After the strong gains seen today, there is scope for at least a slight pullback in the days ahead, but for now it looks likely this will be treated as an opportunity to buy into any dips on the belief that momentum really has returned."
In London, miners were the biggest risers as metals prices rose after the struggling dollar prompted investors to pour more money into commodities.
Gold prices reached another new record amid the shift away from the greenback.
Platinum firm Lonmin was the top riser on the FTSE 100 - up 9 per cent - as its upbeat assessment of improving fundamentals overshadowed news of full-year losses.
Crude oil prices were also higher on dollar weakness, helping related stocks gain ground, such as energy service firm Amec, up 3 per cent.
The positive investor sentiment was likewise seen in the FTSE 250 Index, with housebuilders leading the way after Persimmon said sales trends continued to improve over the autumn, with the average selling price of homes reserved since the start of July 6 per cent higher at £173,000.
The company's shares added 6 per cent, with Barratt Developments ahead 4 per cent and Newcastle-based Bellway lifting more than 5 per cent.
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