US results boosts FTSE

The London market advanced today as blue-chips benefited from broker upgrades and stronger trading in New York.

The FTSE 100 Index maintained its rally after recent volatility to stand 57.3 points higher at 6616.9 by mid-morning, helped by a recovery of more than 150 points for the Dow Jones Industrial Average as US investors celebrated better-than-expected retail sales data.

Bradford & Bingley was the top performer, up more than 5%, or 21p, to 420.75p, after Credit Suisse raised its rating on the stock ahead of a trading update next week.

Positive broker comments also lifted power company Centrica as Citigroup said steadying gas prices had reduced earnings risks for the British Gas owner. The stock was ahead 12.5p to 377p.

Other gainers included mining giant Rio Tinto, up 81p at 3802p after the company said it had settled a dispute with Australian tax authorities. Sector peer Antofagasta also cheered on an upgrade, up 13.5p to 608p, while BHP Billiton advanced 21p to 1346p.

Meanwhile, strong demand for flat panel televisions helped Argos owner Home Retail Group report a strong start to its financial year, meaning the shares edged 1.75p higher at 461.5p.

Only five blue-chip stocks were in negative territory, including AstraZeneca after a drop of 6p to 2590p.

Recruitment specialist Hays made a strong start in the FTSE 250 Index, with shares up more than 3% after it said it expected a 19% rise in second half fee income. The stock reached 172.25p, a gain of 5.5p.

And Dobbies Garden Centres surged 17% after retail entrepreneur Tom Hunter took his stake in the company to 20%, fuelling expectations he may look to thwart last week's takeover offer from supermarket chain Tesco. Shares were 260p higher at 1785p.