Market surges another 100 points today

London’s FTSE 100 Index surged another 100 points today as the bounce back from Wednesday’s £40bn (€59bn) slump continued.

Investors were cheered by Wall Street’s best session in five months as the Dow Jones Industrial Average surged 4% and the tech-laden Nasdaq rose 5%.

That encouragement pushed the Footsie 101 points ahead at 3587.9 in the first hour after adding 6% yesterday.

Analysts remained unsure about the strength of the rally, although it appeared hopes of a short Iraqi conflict had boosted confidence after the sharp sell-off two days earlier.

Gains were seen across a range of sectors with battered insurers again recovering ground. Those on the up included Norwich Union owner Aviva – up 32p at 402p – and Legal & General, which was 3.75p stronger at 68.5p.

Telecoms were also brighter in early trading with Vodafone up 5% or 5.5p at 114p and mmO2 ahead 2.25p at 48.25p.

Only five stocks were in negative territory and again included Canary Wharf amid continued concerns about vacancy rates in its London office portfolio.

On a quiet day for corporate news, supermarket retailer Sainsbury’s rose 3p to 233p after it said chief executive Sir Peter Davis would stay at the group to become chairman in March 2004.