FTSE climbs despite uncertainty

The London market managed to find upward momentum today despite terrorist threats, high oil prices and interest rate uncertainty.

Although jitters hit investors across the Atlantic, the FTSE 100 Index ended the day 14 points higher at 4429.7 after making gains throughout the afternoon.

Investors took heart from a largely trouble-free earnings season so far for UK companies to shrug off fears over the cost of a barrel of crude hitting 44 US dollars in New York.

But the mood was more sombre in New York, where the Dow Jones Industrial Average stood nearly 20 points lower by closing time in London.

Analysts said high oil prices combined with weaker than expected consumer spending took their toll on US shares.

On the economic front in London, a CBI survey provided investors and the Bank of England with some food for thought by showing a July slowdown in retail sales.

However, analysts still believe the Bank will raise rates by a quarter or half percentage point on Thursday.

Oil giants BP and Shell were helping drive the market momentum, both featuring in the top 10 risers as they benefited from soaring crude prices. BP advanced 8.75p to 521p, while Shell was third on the Footsie risers board, adding 10.25p to 409p.

Others making progress included brewer Scottish & Newcastle - owner of Beamish and Crawford, which topped the Footsie leaders board with an 11p gain to 412.25p after a strong performance in the UK helped it boost half-year pre-tax profits by 8%.

The highest Footsie risers were Scottish & Newcastle up 11p to 412.25p, BHP Billiton ahead 13p to 511.5p, Shell up 10.25p to 409p and BG Group ahead 7.5p to 350p.

The heaviest fallers were Royal Bank of Scotland down 49p to 1510p, Shire Pharmaceuticals off 11.5p to 469p, Amvescap down 6.25p to 276.25p and BOC off 20p to 913.5p.