FTSE breaks through 4400 barrier

A respite from record oil prices gave the London market the impetus to break through the 4400 barrier today.

Fears over the impact of sky-high fuel costs on the global economy eased after the price of crude oil in New York fell back to $47.86.

News that British Airways had averted a strike by check-in staff also lifted market morale, with the FTSE 100 Index moving 50 points higher to 4419.2 by mid-morning.

Among blue-chip stocks, only Enterprise Inns failed to catch the mood with its shares off 2.5p at 532.5p.

BA was flying high at the top of the risers board after a pay deal with unions averted a potentially damaging strike over the August bank holiday weekend. Shares were up 6.5p to 218.75p.

Services group Rentokil Initial was ahead 3.25p at 157p on media reports that it was a potential takeover target of private equity firms. The group is also tipped to unveil a share buyback programme alongside its interim results on Thursday.

An upgrade from Morgan Stanley sparked a 5.5p rise in shares of bookmaker William Hill to 546p.

The broker anticipates positive results from William Hill next month, scotching fears of a slowdown in profits growth that have put the share price under pressure recently.

Ladbrokes owner Hilton Group also advanced by 4.75p to 262.5p ahead of its half-year results on Thursday, with a strong improvement in profits expected from its hotels and gaming divisions.

However, Marks & Spencer struggled to benefit from the improved market sentiment. Reports that it had given up its crown as the UK’s largest clothing retailer to Asda kept its shares near their opening mark, up just 0.25p at 346p.

Elsewhere, Arm Holdings fell more than 17% or 17.25p to 83.25p as investors gave a cool response to a $913m (€744.8m) acquisition of US-based chipmaker Artisan Components.