FTSE bounces back

The London market enjoyed a rebound today after a strong finish on Wall Street overnight helped to rebuild sentiment among investors.

The FTSE 100 Index rose by 63.1 points to 6522.4 by 11.15am, clawing back most of yesterday's losses, as European markets were boosted by a round of bargain hunting and improved optimism in the US following strong corporate earnings results from iPod maker Apple.

Banking stocks were back in favour, following an update from second tier mortgage lender Bradford & Bingley. The stock was up 12.75p, or 5%, at 266.75p after it announced that it remained comfortable with its current funding and liquidity levels.

The positivity spilled over into the rest of the sector, with Northern Rock lifting 3%, or 5.8p, to 191.2p, closely followed by Alliance & Leicester, up 23p to 750.5p. Halifax parent HBOS was 21.5p higher at 847p, while Barclays increased 8.5p to 588.5p.

Oil giant BP was more than 1% ahead, or 7.5p at 612.5p, despite posting a 45% fall in profits in the third quarter. However analysts said the results were not as bad as market expectations after net income came in 6% ahead of consensus forecasts.

Record iron ore and strong coal production buoyed BHP Billiton 32p to 1796p, even as copper and nickel output fell below expectations. The news cheered the sector, with Vedanta Resources ahead 74p at 2128p and Antofagasta up 26p at 806.5p.

In the FTSE 250 Index, car dealership Inchcape jumped almost 7%, or 29.75p, to 477p after it reported continued sales growth in the third quarter of the year.

Department store group Debenhams lifted 2.5p to 106p after it said like-for-like sales had improved by 2.1% since the start of September.

Elsewhere, football kit maker Umbro surged 14%, or 23.25p to 188.25p, after it agreed to a £285 million takeover by sportswear giant Nike.