FTSE boosted by US retail figures
The London market took heart from buoyant retail figures in the US today, as healthy employment levels also boosted the world's biggest economy.
A rise in American retail sales in November painted a brighter picture for the US and boosted stocks this side of the Atlantic with the FTSE 100 Index up 36.1 points at 6192.5 by the close.
In New York, the Dow Jones Industrial Average was also ahead as sales of cars and electrical appliances improved, along with building materials - despite the feared slowdown in the US housing market.
Back in the City, investors offered a cautious welcome to a fall in UK unemployment figures, which showed the number of people out of work fell by 7,000 in the three months to October.
The news, however, was tempered by evidence that average earnings had increased by 4.1% in the year to October, up by 0.2% on the previous month, adding to fears over spiralling inflation rates.
It was not a good session for Alliance & Leicester, which fell almost 1% despite saying that annual profits would be at the top end of expectations.
Shares in Alliance were off 9p to 1102p after Collins Stewart gave the stock a "sell" rating, arguing that revenue generation remains weak.
It was followed down the fallers' board by Severn Trent after the water firm went ex-dividend, meaning that investors are no longer entitled to the latest results pay-out. The shares fell by a penny to 1468p.
Cadbury Schweppes recovered from a slump earlier in the day to finish 2.5p stronger at 545p despite a downgrade from Cazenove, which said there were better money-making opportunities elsewhere in the sector.
Meanwhile, sugar and sweetener maker Tate & Lyle lifted nearly 4% or 30.5p to 817.5p as traders speculated that it may next week announce higher margins on its US drinks contracts in 2007.
Drax - the UK's largest coal-fired power station - added 1.5p to 818p after suggesting full-year earnings would be in the region of £578m (€859m) to £585m (€870.37m) compared to £239m (€355.58m) last year.
The Footsie leaderboard was also notable for the presence of retailer Next, which was up 28p at 1793p, even though a trading update from Debenhams yesterday heightened worries about prospects in the sector. Debenhams fell half a penny to 182.5p after a fall of 1% yesterday.
Engineering group Amec turned around early losses to gain 14.25p to 439.5p, or 3%, after new chief executive Samir Brikho unveiled details of his strategy review. He will sell some businesses, but also warned profits for this year would be £15 million below board expectations.
Investors were less enthused by an update from Bunzl, which bought packaging firm Keenpac and said trading for the full year would be in line with expectations. Shares fell more than 5% or 32.5p to 642p.
The day's biggest blue-chip risers were Tate & Lyle up 30.5p to 817.5p, British Energy up 17.5p to 500p, National Grid up 25.5p to 741p and International Power up 13.25p at 388.25p.
The day's biggest blue-chip fallers were Rolls-Royce down 10.75p at 432.25p, Vedanta down 26p at 1243p, Cairn down 18p at 2040p and Astrazeneca down 25p at 2900p.
