THE FTSE 100 Index entered the second half of the year with a more than two per cent rise yesterday as positive world manufacturing data helped boost hopes of economic recovery.
UK, US and European figures all indicated that the manufacturing sector, while still in decline, was gradually returning to health.
The Footsie closed up 91.5 points at 4340.7 amid stock markets rises across the world.
In the UK, the Chartered Institute of Purchasing and Supply’s (CIPS) report said that last month output in the industry rose for the first time since March last year, 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 one per cent in early trading.
In London, mining and energy stocks saw strong advances amid a bounceback in commodity prices following falls on Tuesday, including a gain in the cost of oil as benchmark crude for delivery next month rose above $70 a barrel on the New York Mercantile Exchange.
Vedanta Resources set the pace with a rise of ten per cent, or 127p, to 1415p, while Antofagasta lifted 37p to 624½p and gas explorer BG improved 43p to 1061p.
Oil major BP was 12.2p higher at 490p and rival Royal Dutch Shell added 30p to 1556p.
Improving sales figures from Marks & Spencer sent its shares up four per cent after it reported a better- than-expected 1.4 per cent drop in first quarter like-for-like sales. Shares lifted 11½p to 317½p.
Its upbeat outlook also boosted rivals, with Next up 57p at 1526p.
British Airways was one of the few fallers amid the increased threat of industrial action. Its shares declined 0.7p to 124p.
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