London market makes early gains

The London market charged back above the 4100 level today after investors took their lead from a strong close on Wall Street last night.

US exchanges made healthy gains yesterday following better-than-expected retail sales figures in America and a fall in jobless claims.

The market was also cheered by improved results from retailers such as GAP.

Strong gains in Japan overnight, where the Nikkei rose more than 2%, also helped buoy the mood.

And as the improved sentiment filtered through to European exchanges after an hour’s trading the FTSE 100 Index was up 54.8 points at 4107.9.

In a light day for corporate news, gainers included heavyweight financial and telecoms stocks.

HSBC put back yesterday’s losses, when it splashed out £9bn (€14.2bn) on US consumer finance company Household International. Shares today rose 32.5p at 712p.

Other banks on the rise included Royal Bank of Scotland, up 31p at 1530p, and Barclays, 7.5p stronger at 444.5p.

Telecoms also lent a hand to the index, with Vodafone up 2.75p at 119p and BT rising 8p at 218p.

But Cable & Wireless continued to fall in the wake of its disappointing trading statement earlier this week.

The group is slashing staff and taking a large restructuring cost as it reorganises its Global division. Shares fell 5.5p to 69p.