FTSE index soars on recovery hopes

London's FTSE 100 Index soared to gains of more than 4 per cent today as global markets roared higher on an wave of optimism over the G20 summit and hopes that the world's biggest economy may be on the mend.

The Footsie climbed above 4,000 for the first time since February - gaining 4.3 per cent to close at 4,125 - as the markets also reacted to positive news elsewhere.

There was a surprise rise in UK house prices last month, an interest rate cut from the European Central Bank, and better than expected economic news from the US.

Data showing a large increase in February factory orders followed yesterday's better-than-expected readings on manufacturing activity and car sales.

Wall Street's Dow Jones Industrial Average pushed back above 8,000 with gains of more than 3 per cent on a day when financial stocks were also boosted by the easing of accounting rules on "toxic" assets which should help cut their losses.

Financial stocks led the rally, getting a big boost after the Financial Accounting Standards Board relaxed accounting rules forcing banks to value their assets at current prices. The change should help banks reduce losses.

In Europe, France's CAC 40 rose 5.3 per cent, while Germany's Dax gained 6 per cent. This followed strong advances in Asia, where Hong Kong's Hang Seng and Japan's Nikkei rose 7.4 per cent and 4.4 per cent respectively.