Housebuilder and retail stocks boost FTSE

Housebuilders and retail stocks cheered the London market today after an encouraging series of trading updates today.

Primark owner Associated British Foods and Barratt Development ensured the FTSE 100 Index rose by as much as 85.5 points at one stage, but this proved short-lived after Merrill Lynch followed other major US banks in reporting hefty sub-prime related write-downs.