Footsie set to climb above 4700 again

The Footsie index of 100 leading stocks is up 33 points by mid-morning at 4696.4, and looking set to close above the 4700 mark for the first time for four days.

After tumbling as low as 58.6 points early on, blue-chip stocks are regaining their composure - boosted by a strong showing by the German DAX stock market and forecasts of slight gains after the opening bell on Wall Street.

BP's share price is up 3% after its recent losses, rising by 16½p to 526p; while Shell is up 6½p to 473p after German utility group RWE boosted sentiment by reporting record full-year profits in its oil division and giving an upbeat trading forecast.

A number of banks are also lending their weight to the rally, with Royal Bank of Scotland up 42p to £14.77; HSBC 8½p ahead at 673½p; Barclays up 77p to £18.17; and HBoS climbing 11p to 748p, reversing its heavy losses of late.

EMI, which saw more than £900m wiped from its market value after a profits warning yesterday, has climbed back 10% or 21p to 235p.

But British Airways is topping the fallers' board after its share price fell by 6% or 11¼p to 163¼p.

Boots also topped the fallers' board at one point after a disappointing trading update showing a slow second quarter. By mid-morning, its share price is down 5p to 603½p.

Lattice is down 2¾p to 152p after Ofgem's final price control proposals for its Transco gas pipeline division. The group said the regulator's move to cut revenues would leave a £1.9bn funding shortfall, and hinted at a possible Competition Commission reference.

Outside the Footsie 100, Bloomsbury - home of kid wizard Harry Potter - is up 22½p to 715p after reporting a surge in half-year profits.