Upbeat Dow raises FTSE hopes

Hopes of another upbeat performance on Wall Street were supporting the London market today.

Traders were looking for the Dow Jones Industrial Average and Nasdaq to build on last night’s gains when dealing gets under way later this afternoon.

Yesterday saw both US markets shoot ahead on better-than-expected retail sales, a fall in jobless claims and improved corporate results.

And the optimistic mood today meant the FTSE 100 Index was able to move ahead despite an absence of corporate news to inspire trading.

By lunchtime the top flight was hovering just under the 4100 mark after improving 38.3 points to 4091.4.

Leading the risers with a 33.5p climb to 535.5p was venture capital firm 3i.

The 7% hike saw 3i come back from falls yesterday, when its half-year figures met expectations but failed to win over a subdued market.

Also recovering from a battering yesterday was HSBC.

Then the banking giant fell on news it was issuing shares to fund its £9 billion acquisition of US consumer finance firm Household International.

Traders had been concerned the deal would dilute the stock but today HSBC rose 43.5p at 723p – a 6% spark.

Other financial stocks adding support were Amvescap, ahead 20.25p at 415p, Old Mutual, up 3.75p at 90.25p, and Royal Bank of Scotland, 34p stronger at 1533p.

Lloyds TSB bucked the trend, however, and lost 22p at 508p as rumours circulated that the high street bank was considering a dividend cut.

Elsewhere, Sage – the sole remaining tech stock left in the top flight – rose 3.5p at 148p which analysts attributed to the Nasdaq’s strong performance and upbeat third-quarter figures from US computer giant Dell.

Other new economy stocks moving forward included BT, up 2.5p at 212.5p, and Vodafone, which nudged ahead 0.25p to 116.5p.

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

C&W is slashing staff and taking a large restructuring cost as it reorganises its Global division.

Shares fell 4.75p to 69.75p – a further 6% slide.

With corporate news thin on the ground, announcements were largely restricted to smaller stocks.

Model train maker Hornby steamed ahead 16p to 482.5p after revealing half-year profits had more than doubled.

And software firm Orchestream added 0.75p at 5.5p, a 16% rise, after third-quarter results from the former stock market star pleased the City.