FTSE climbs as oil prices slide

Doubts about the strength of the UK economy failed to stop London shares finishing in positive territory today.

The FTSE 100 Index lost all its gains in the wake of weaker-than-expected GDP figures before rallying to close 20.3 points higher at 4438.3.

Market morale was lifted by oil prices falling 1% in New York where the Dow Jones Industrial Average also stayed close to the break-even mark after rising nearly 160 points overnight.

Geoff Langham, head of trading at deal4free.com, said GDP figures in the US tomorrow would be crucial and could drive the Footsie below the 4,400 level if they fail to meet hopes.

Among the risers in London, chemicals group ICI surged 7% – up 14p at 214p - after voicing "cautious optimism" in a statement to shareholders at the company’s annual general meeting.

Troubled retailer Marks & Spencer also found favour – up 10.25p at 290.5p - despite the sales disappointment contained within yesterday’s annual results.

However, there was no bounce back for Vodafone following its post-results slump of 5%. Shares were close to their opening mark today, down 0.5p at 128.25p.

Other fallers included Barclays – off 2.25p at 496.25p as shareholders prepared for a trading statement from the group tomorrow.

Elsewhere, Abbey National eased 2.75p to 450p and Royal Bank of Scotland slipped 7p to 1659p.

The biggest Footsie risers were ICI up 14p at 214p, GKN ahead 10.25p at 230p, Marks & Spencer up 10.25p at 290.5p and Johnson Matthey ahead 23p at 868p.

The biggest fallers were Sainsbury’s down 7.25p at 265.75p, mmO2 off 1.25p at 93.5p, Centrica down 2.25p at 212p and AstraZeneca off 18p at 2570p.