Footsie buoyed by positive US news

Takeover fever on Wall Street fuelled a festive feeling on the London market today.

The FTSE 100 Index jumped 19.4 points to 4742.2 after news of a potential €13bn merger between United States computing giants Symantec and Veritas buoyed US markets.

The news, as well as other takeover talk and upbeat corporate announcements, pushed the Dow Jones Industrial Average nearly 40 points higher by the bell.

The market largely ignored the Federal Reserve’s widely expected quarter point hike in US interest rates to 2.25%, analysts said.

Back in London, the economic news was good with official figures showing another fall in unemployment, fewer people claiming Job Seekers’ Allowance and the number of men and women in work reaching another record.

On the corporate front, banking group HBOS was at the top of the Footsie risers with a 3% or 26.5p rise to 832.5p after Goldman Sachs raised its target price on the stock and Lehman Brothers said it preferred the stock over Lloyds TSB. However, that failed to deter investors in Lloyds, which also saw its stock pick up 3% or 15.5p to 459.25p.

Vodafone was also among the risers as it recovered from yesterday’s losses, prompted by a report that its US ally Verizon was considering an offer for a key rival. Shares lifted 1.25p to 140.75p.

In contrast, B&Q owner Kingfisher was the heaviest blue-chip faller after reporting a slowdown in sales growth as trading conditions toughened over the autumn period. Shares fell 10p to 296p.

Outside the top flight, troubled holiday group MyTravel lifted 11% – up 0.6p to 5.75p – as it said an upturn in its business in Europe and North America had helped it move into the black.

However, shares in holiday park operator Center Parcs slumped 10% or 9p to 78.5p after it warned that higher energy bills would hit results in its next financial year.