Buoyant Wall St boosts FTSE

A bullish mood on Wall Street helped buoy the London market to close at its highest level for almost seven years today.

An uninspired early trading session gave way to strong advances in the afternoon following renewed confidence in the US after a flurry of positive data on jobs, manufacturing and inflation.

The FTSE 100 Index closed up 55.3 points at 6676.7, with investors ending the shortened trading week in an upbeat mood after a volatile few days for world markets.

Firming metal prices combined with the US data to spur on the Footsie.

Mining group Vedanta Resources topped the risers’ board with shares up 4%, or 60p, at 1550p on the back of the stronger metal prices, with Antofagasta not far behind with shares up 15p at 572.5 and BHP Billiton ahead 28p at 1258p.

Meanwhile mobile phone giant Vodafone also made progress with a Morgan Stanley recommendation citing the group’s strong prospects in emerging markets. The stock was 4.9p up at 162.9p.

Catalysts-to-precious metals group Johnson Matthey also benefited from bullish broker notes, continuing to see shares rise after yesterday’s note from Citigroup stating that the firm was “well set” to take advantage of rapid growth in its key markets. Shares closed up 45p at 1671p.

Anticipation over the property portfolio of pubs chain Punch Taverns saw the firm fare well, with stock gaining 3% – up 35p at 1379p – as a Goldman Sachs note argued a “compelling case” for the company to convert to tax efficient real estate investment trust status.

The note came despite the firm dampening speculation over the move in results earlier this month.

Takeover speculation lifted Argos owner Home Retail Group more than 2% higher with market talk of a potential bid from private equity firm CVC driving it up the leaders’ board. The stock was ahead 11.25p at 483p.

But power companies were out of favour in the market with Drax and Centrica high on the list of share fallers amid nervousness over the prospects for the sector. Drax down 14.5p at 786p, Centrica was off 3.5p at 379.75p and Scottish & Southern Energy was down 4p at 1527p, despite better-than-expected results in the previous session.

Pharmaceutical firms also struggled. GlaxoSmithKline slipped 18p to 1292p as US regulators declined to give a fast-track review to the company’s experimental cancer vaccine Cervarix, while Shire was 9p down at 1178p. AstraZeneca was off 3p at 2683p as the firm completed a successful tender offer for US firm MedImmune.

Elsewhere, model train group Hornby’s shares were off 11.5p at 274.5p – a fall of more than 4% – as the firm disappointed with lower than expected profits.

The biggest Footsie risers were Vedanta Resources up 60p at 1550p, Vodafone ahead 4.9p at 162.9p, Johnson Matthey up 45p at 1671p and Invesco up 16.5p at 615p.

The biggest Footsie fallers were Drax off 14.5p at 786p, GlaxoSmithKline down 18p at 1292p, Northern Rock down 11p at 1069p and Centrica down 3.5p at 379.75p.