Blue chips bolster FTSE

London’s blue-chips were in buoyant mood today after a record showing from US markets overnight.

The FTSE 100 Index was 21.3 points higher at 6719 by mid-morning, maintaining early momentum after the Dow Jones Industrial Average soared more than 2% to close at a new all-time high.

Financial stocks littered the Footsie risers board, with Man Group – the world’s largest manager of hedge-fund assets – taking top spot after the group said its assets under management grew 9% in the three months to the end of June. Shares were up 14p at 630.5p.

Banking group Standard Charter was also 38p ahead at 1680p, Alliance & Leicester was 23p up at 1126p and insurer Prudential cheered 14p to 732p.

Meanwhile news from Holland that a court had given approval to ABN Amro’s sale of its US operation LaSalle gave a boost to suitor Barclays, up 6.5p at 725p on the verdict. Rival ABN bidder Royal Bank of Scotland – which had been hoping the sale would be blocked – made lesser gains, ahead 2.5p to 637.5p.

But retail stocks were out of favour today after a downgrade for B&Q owner Kingfisher from JP Morgan, which said the stock would be affected by lower footfall due to wet weather.

Kingfisher was off 2p at 222.75p, while Argos owner Home Retail Group fell 2.75p to 453.75p

Miners also lost some of their sparkle after strong gains made yesterday on the back of sector consolidation hopes from Rio Tinto’s 38.1 billion US dollar (£18.7bn) deal to buy Alcan.

BHP Billiton was off 8p at 1546p, Antofagasta down 6p at 709.5p, while Lonmin fell 29p at 4328p.

In the FTSE 250, Wembley Arena owner Quintain Estates and Development rose more than 4%, or 37p, to 892p after HBOS’s property unit increased its stake in the group, also igniting rumours of further takeovers in the sector.