FTSE resists lending figures weakness

Weak lending figures failed to derail the London market today as traders took the FTSE Index higher on the back of a strong session in New York last night.

Relief that oil prices eased from the level of $70 seen early on Monday lay behind the improvement on Wall Street, helping the Footsie to resume after the extended holiday with a gain of 29.3 points to 5257.4 by mid-morning.

Figures from the Bank of England showing that credit card borrowing rose at its slowest pace for more than four years did little to suggest a recovery in economic confidence, although analysts took this as a sign that interest rates could be lowered in the coming months.

Retailers also took a gloomy report on their sector in their stride, even though the CBI said firms were at their most pessimistic for seven years.

Boots rose 7.5p to 621.5p and Marks & Spencer added half a penny to 357.5p but B&Q owner Kingfisher fell 2.25p to 253p after a study from Verdict Research highlighted continued pressure from Homebase and Argos in the DIY market.

Property group Hammerson also did the Footsie a favour after it said it was optimistic about future rents in the retail sector and demand for office space.

Hammerson shares rose 12.5p to 891.5p and British Land added 11.5p to 876.5p.

Ladbrokes owner Hilton led the way for the Footsie – up 3% or 8.5p to 318.5p - after broker Morgan Stanley upped its target price. The positive assessment also helped rival William Hill to improve 9.5p to 580.5p.

Elsewhere, Choices Video chain owner Home Entertainment dropped 6% or 7.5p to 115p after its performance over the past year was hurt by widespread piracy of DVDs and few Hollywood blockbusters.