Manufacturing optimism leads to FTSE rise

The London market recovered lost ground today as signs of an improved performance in the manufacturing sector lifted the mood of traders.

The FTSE 100 Index stood 24.8 points higher at 4728, despite the US dollar falling to its lowest level against the pound for more than 12 years.

The improvement, which followed a 46 points dip yesterday, reflected the hopes of investors that the UK economy was regaining momentum lost over the autumn.