Oil helps lift market as UK growth disappoints

The Footsie posted its highest one-day gain in more than two months, as recovering oil prices offset disappointing UK growth figures.

Strong overnight trading on Wall Street and Asia saw the Ftse 100 Index jump more than 2.6% higher, up 157.9 points to 6241, after Brent Crude lifted 3.2% to 37.28 US dollars a barrel.

The market’s Santa rally, on the last full day of trading before Christmas, was the biggest one-day gain since October 5.

The rising market, which saw only one stock close lower, came despite UK growth being revised down for the second and third quarters of this year by the Office for National Statistics (ONS).

In its latest revisions, the ONS revealed growth was 0.4% in the three months to the end of September, down from the initial estimate of 0.5%, while the expansion of the economy was also revised down to 0.5% for the quarter to the end of June, from the 0.7% previously recorded.

Miners were leading the charge in London, with Glencore the biggest blue chip riser with a more than 8% gain, up 7.3p at 93.1p.

Shares in Royal Dutch Shell lifted 71.5p to 1564.5p, after the oil major cut its planned capital spending for next year by two billion US dollars (£1.3 billion) to 33 billion US dollars (£22 billion).

The move from Shell comes as it continues to contend with low oil prices as it pushes ahead to complete its £47 billion acquisition of gas explorer BG Group.

BP was also 15.5p higher at 360.4p.

But it was another poor session for retailers, with small-cap chain Game Digital becoming one of the early Christmas casualties after it warned over profits due to weaker-than-expected computer game sales.

It said half-year underlying earnings were expected to fall to around £30 million - a drop of 30% on a year earlier.