Tech and telecoms stocks lead Footsie recovery

Long-suffering technology and telecom stocks are surging into positive territory after the world's largest chipmaker boosted hopes of a recovery in the US economy.

Intel reported a 63% drop in income for the first quarter of its financial year, but the fall was lower than expected, and stock markets have rallied throughout the Far East and Europe.

By mid-morning, the Footsie index of 100 leading stocks on the London Stock Exchange is up by 71 points - with tech and telecom stocks leading the way - to stand at 5832.1.

Investors in London have also been cheered by the publication of the minutes of the Bank of England Monetary Policy Committee's last interest rate meeting. They showed that three members of the committee wanted to make a cut of 50 basis points - fuelling hopes of a further cut in the near future.

The Footsie risers board is dominated by new economy stocks, led by computer service group Dimension Data, which has rebounded from recent falls to post a gain of 11% or 28½p to 287½p.

Chip designer ARM Holdings is up 10% or 31¼p to 339¼p; while software group Sage has posted a 24½p rise to 250½p.

Misys is also performing well, surging 37p to 501p, helped by positive reaction to its own upbeat trading statement. in which is said the outlook for the year to May 31 was "in line with expectations".

Among the telecoms stocks faring well, Marconi has shot up 26½p to 346½p; Colt Telecom is up 55p to 741p; and Vodafone is 7¾p ahead at 217p.

Fallers include supermarket groups Morrisons and Tesco, down 2p to 206¾p and 1¾p to 256½p respectively. But defence and aerospace group BAE Systems tops the list of losers, tumbling 9¼p to 344¾p.

It is proving a better day for Associated British Foods, whose interim pre-tax profits rose 12% before exceptionals, helping shares in the company up by 13½p to 442p.