Obama gives boost to FTSE
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 (€528,132) 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.
