LONDON'S benchmark FTSE 100 index entered the second half of the year with a strong rise yesterday as positive world manufacturing data helped to boost hopes of economic recovery.
UK, US and European figures all indicated that the manufacturing se
ctor, while still in decline, is gradually returning to health.
The Footsie closed up 91.5 points, or almost 2.2 per cent, at 4,340.7 amid stock markets rises across the world.
David Fineberg, head of trading at CMC Markets, said: "The FTSE is back above the 4,300 level that we have been watching for the last few weeks
"And although the long weekend in the US – plus the release of the non-farm payrolls – could present some distractions in the short term, the market does seem to be showing an almost unwarranted degree of resilience as we move into the summer."
In the UK, the Chartered Institute of Purchasing & Supply's report said output in the industry last month rose for the first time since March 2008, while its overall activity index was at a 13-month high.
Wall Street was also buoyed by similar survey data of easing decline for the sector and the Dow Jones industrial average rose more than 1 per cent in early trade.
In London, mining and energy stocks saw strong advances amid a bounce back in commodity prices following falls on Tuesday, including a gain in the cost of oil as benchmark crude for August delivery rose above $70 a barrel on the New York Mercantile Exchange.
Vedanta Resources set the pace with a rise of 10 per cent or 127p to 1,415p, while Antofagasta lifted 37p to 624.5p and gas explorer BG improved 43p to 1,061p.
Oil major BP was 12.2p higher at 490p and rival Royal Dutch Shell added 30p to 1,556p.
Improving sales figures from retail giant Marks & Spencer sent its shares up almost 4 per cent after it reported a less-than-feared 1.4 per cent drop in first quarter like-for-like sales.
M&S was one of the leading risers after executive chairman Sir Stuart Rose said he saw a more stable picture for consumer confidence. Shares lifted 11.5p to 317.5p.
The group's first-quarter sales showed a marked improvement on previous quarters.
Its upbeat outlook also boosted rivals, with Next up 57p at 1,526p, B&Q-owner Kingfisher ahead 6.9p to 184.7p and Argos firm Home Retail Group 5.25p stronger at 265.25p.
British Airways was one of the few fallers in the top flight amid the increased threat of industrial action over the busy summer months. Its shares declined 0.7p to 124p.
In the banking sector, Lloyds Banking Group slid 1.68p to 68.25p, not helped by poor sentiment from Credit Suisse.
The full article contains 485 words and appears in The Scotsman newspaper.
