FTSE 100 jumps on retailers

Wednesday, 04 November 2009 12:00

The FTSE 100 closed 1.4 per cent higher at 5,107.89 on upbeat news from the UK high street and a strong start on Wall Street.

Following an unsettled session yesterday, the index got off to a good start with news the service sector performed better-than-expected in October.

Encouraging sales figures from Marks & Spencer and an optimistic statement from insurer Aviva helped maintain the momentum, while builders Taylor Wimpey and Redrow also boosted hope for the housing market with upbeat outlooks.

A strong start to trading on Wall Street ahead of a Federal Reserve announcement also helped boost afternoon trading on the FTSE 100.

The blue-chip index ended the day comfortably over the 5,000 mark, led by miner Fresnillo, up by 9.19 per cent on stronger silver prices.

Positive news from the high street also lifted Thomas Cook, up by 7.41 per cent, while Marks & Spencer rose by 6.01 per cent.

Banking stocks were lower following yesterday's bailout news, with Lloyds Banking down by 1.19 per cent and Royal Bank of Scotland down by 0.5 per cent.

Cadbury was also trading 1.42 per cent down, after bidder Kraft reported disappointing results and put a potential takeover in jeopardy.

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