Retailers and commodities boost FTSE 100

Wednesday, 04 November 2009 12:00

The FTSE 100 was lifted in early trading by commodity and retail stocks, rising 0.63 per cent to 5,068.94 by 09:50 GMT.

Several positive trading updates and better-than-expected activity in the services sector during October helped boost sentiment among investors on the UK's leading shares index.

Aviva led the rise, up by 6.22 per cent despite reporting a 25 per cent drop in sales.

The insurer was still able to improve its market share and margins in the third quarter update, and investors were cheered by Aviva's decision to set aside £1 billion for potential acquisitions.

Silver miner Fresnillo was also among the biggest gainers on the index in early trade, up by 5.93 per cent to 795.5p, as precious metals prices held steady.

Marks & Spencer led a rally in the retail sector, up by 5.72 per cent on upbeat sales figures, followed by a 5.25 per cent gain for Next.

After yesterday's banking bailout sent the FTSE 100 into the red, better economic news this morning has helped the index get back on track.

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