GLOBAL markets powered to new stimulus-induced highs yesterday as a recent flurry of action by central banks sent investors flocking to equities.

The FTSE 100 climbed 26.2 points to 6583.5, a level not seen for five-and-a-half years, as last week’s positive US payrolls report and the prospect of more action from the European Central Bank continued to buoy stocks.

Chinese trade data for last month reinforced the positive tone, with exports rising 14.7 per cent and imports also up sharply by 16.8 per cent.

On Wall Street, the Dow Jones Industrial Average made more gains in early trading after closing above 15,000 for the first time on Tuesday, while Asian and European markets followed up with further gains.

The Dax in Frankfurt was up 0.8 per cent to another record high and the Cac 40 in France gained 0.9 per cent.

On the currency markets, the pound was up strongly against the US dollar to 1.56 amid expectations for the Bank of England to hold off from more economy-boosting measures in tomorrow’s monthly rates decision.

But sterling dipped slightly against the euro to 1.18.

In corporate updates, Sainsbury’s slipped 15.5p to 381p despite meeting expectations with a six per cent rise in full-year underlying profits to £756m.

Markets reacted nervously to the results, particularly the decision to buy the 50 per cent stake in Sainsbury’s Bank held by Lloyds Banking Group for £248m, fearing it may add risk over the transition period.

And while chief executive Justin King said sales were expected to grow this year by one per cent ahead of the market, the flat performance forecast for the sector as a whole meant this equated to an increase of only one per cent to 1.5 per cent for 2013-14.

In contrast to the three per cent share price fall for Sainsbury’s, rival Tesco edged 5.3p higher to 375.3p and Morrisons improved 3.7p to 296.4p, ahead of its own trading update today.

Elsewhere in the retail sector, fashion firm Next rose 195p to 4601p as it highlighted another period of resilient trading.

Retail sales for the 14 weeks to May 4 were down 1.9 per cent, but there was a rise of 8.9 per cent for Next Directory, giving an overall increase of 2.2 per cent.