Blue chips lift London market

Blue-chip shares raced ahead today as buoyant trading helped lift the London market to its highest close for nearly six weeks.

A number of upbeat corporate announcements set the mood in the City while strong gains on Wall Street added to the improved sentiment.

The US benefited from a smaller than expected dip in a key economic forecasting gauge and both the tech-laden Nasdaq and Dow Jones Industrial Average were trading higher by London’s close.

That meant the FTSE 100 Index was able to continue its encouraging run and add 96.8 points at 4426.8.

The last time the top flight closed higher was July 9, when it reached 4542.9.

Today’s gains came despite a gloomy performance from heavyweight drugs giant AstraZeneca.

It tumbled 280p to £20.90, a 12% dive, after trials showed cancer treatment Iressa did not enhance survival chances when added to standard platinum-based chemotherapy.

The Anglo-Swedish group has seen its shares fall back steadily since March, when they touched £36.25.

ITV broadcaster Granada was the day’s biggest riser, however, putting on 9at 84p on plans to forge closer ties with rival Carlton Communications.

The groups, long touted as possible merger partners, plan to combine parts of their operations to cut costs and woo advertisers.