Market starts positively

Investors have drawn encouragement from a strong performance on Wall Street as the FTSE 100 Index looked set to continue its steady progress.

The Footsie rose 21.2 points to 4320.2 in the first hour of trading after a 2% lift for the tech-laden Nasdaq and a 100 point gain for the Dow Jones Industrial Average in New York.

Sentiment in the United States was helped by reassuring comments from the US Federal Reserve at the time of its "no-change" interest rate decision.

Insurers were among the main beneficiaries of the upbeat mood in London with Aviva strengthening 12.75p to 526.75p and Legal & General up 1.75p at 103.325p.

On the corporate results front, B&Q owner Kingfisher rose 3.25p to 284.25p despite announcing sharply lower profits in the wake of the demerger of its electricals business.

The company's underlying performance was far stronger, while positive comments from management also cheered investors.

Comet owner Kesa Electricals, which split from Kingfisher in July, added 5.75p to 217.5p after reporting an improved trend for sales.

Trading profits in the first half of its financial year fell 8% but FTSE 250 listed Kesa also reassured the City that it was in good shape following the demerger.