London shares continue surge

The New Year got off to a flying start in London today as leading shares surged through a psychologically important barrier.

The FTSE 100 Index ended the first trading session in 2004 up 33.3 points at 4510.2, above the so-called resistance level of 4500.

The gains represented a 17-month high and the tenth day in a row that the Footsie has closed in positive territory.

Bad news about festive sales from high street stationer and bookseller WHSmith rippled through to top flight retail stocks.

But banks, insurers, mobile phone firms and other blue chips all benefited from investor optimism about 2004, buoyed by the Footsie’s first annual advance in four years earlier this week.

Some analysts have predicted that the Footsie could hit 4,980 during the year if concern about terror attacks goes unfounded.

The Dow Jones Industrial Average added to the upbeat mood, standing 52 points ahead shortly after London’s close.