Footsie inspired by Wall Street

London traders have taken their lead from developments overseas as the FTSE 100 Index closed higher for a second successive session.

Wall Street dictated the pace as gains overnight ensured the Footsie got off to a bright start.

That lasted for much of the session until disappointing US consumer confidence data sent the Dow Jones Industrial Average lower and left the London market off its earlier 60-point high.

By the close, the FTSE 100 Index was still in a healthy position, however, up 38.3 points 5139.0, as it continued to pull away from the 5,000 barrier.

Among other positive factors were better-than-expected business confidence figures from Germany.

That immediately raised hopes of a Eurozone recovery and the prospect of a brighter market for UK exporters.

The upward surge in London was led by telecoms stocks with Cable & Wireless up 9½p at 226½p, Vodafone ahead 2¾p at 129¼p and mmO2 up 4p at 65¾p to top the Footsie risers board.

However, BT Group, which announced plans to cut wholesale prices for broadband internet access, endured fluctuating fortunes. It eventually settled 1½p down at 262½p.

Outside the Footsie, Colt Telecom lifted 2½p to 45¼p, while Kingston picked up 4p at 81p and Marconi gained half a penny to 19¾p.

Among the FTSE 100 Index tech shares, chip designer ARM rose 10¼p to 284¾p, while software firm Sage was half a penny ahead at 197½p.