FTSE climbs to highest for 27 months

Leading shares climbed to their highest for 27 months today as positive sentiment surrounding equities overcame downbeat US economic news.

The FTSE 100 Index broke the 4700 barrier earlier in the day, but subsided to stand 22.2 points ahead at 4681.8 by the close.

The price of US light crude supported the Footsie by remaining slightly below $50-a-barrel throughout the day. Expectations that interest rates in the UK and US would remain on hold also buoyed spirits.

Aerospace shares were doing well amid hopes of new orders at this week’s Japan Air Show and weekend reports that Airbus is planning to develop a rival jet to Boeing’s 7E7 Dreamliner.

BAE Systems was the sector’s biggest riser, putting on 7p to 238.5p, while Rolls-Royce lifted 1% or 3.25p to 265.75p and Smiths Group advanced 11p to 760p. GKN added more than 3% or 6.75p to 220.5p.

BP, which issued a third quarter update in line with expectations, fell 5.5p to 534.5p on the back of declining oil prices while rival Shell also lost 3p to 412p.

Elsewhere, Manchester United shares moved more than 5% or 13.75p ahead to 271p after the Premiership club confirmed a takeover approach.

Online retailer lastminute.com lost a penny to 134p after describing its crucial summer trading season as “challenging”.

The day’s biggest risers included Prudential, up 14p to 475.5p, BAE Systems climbing 7p to 238.5p, 3i Group advancing 16.5p to 587.5p and SAB Miller picking up 21p to 760p.

Largest fallers were Antofagasta, down 27p to 1120p, Land Securities off 27p to 1158p, Anglo American falling 26p to 1315p and Xstrata losing 18p to 917p.