FTSE moves towards 5000 landmark

The FTSE 100 Index edged closer to the landmark 5000 barrier today as momentum from across the Atlantic rubbed off on London shares.

Positive news in a court case involving tobacco firms also helped the top flight index gain 32.8 points to 4974.3 by mid-morning. The index last stood above the 5000 threshold in the summer of 2002.

It mirrored rises of more than 1% for both the Dow Jones Industrial Average and the tech-laden Nasdaq in New York – performances driven by stronger investor sentiment towards the US economy. The Dow closed up 123 points on Friday.

In London, British American Tobacco neared the top of the list of Footsie risers – up 22.5p to 965p as investors welcomed a US court decision clearing tobacco firms of liability in a major civil claims lawsuit in Washington.

Manchester United shares were up 6% – 15.25p to 283.5p – after the club confirmed a new takeover proposal from sports tycoon Malcolm Glazer.

Budget airline easyJet fell 2.75p to 229.25p as it warned that the outlook remained uncertain despite passenger numbers soaring by almost a quarter last month.