FTSE advances on strong Asian and US gains

The FTSE 100 Index advanced more than 3% today as strong gains for US and Asian markets set the tone.

Bargain-hunting on Wall Street pushed the Dow Jones Industrial Average almost 7% higher overnight, while Hong Kong’s Hang Seng and Japan’s Nikkei 225 both added more than 2%.

The blue-chip index – which had suffered four successive days of losses this week – added 144 points to 4313.2 by mid-morning. Just three stocks were in negative territory.

The gains came despite a recession in the Eurozone being confirmed for the first time by official figures.

In London, commodity firms as well as insurance stocks that had been punished amid concerns over their capital strength in recent weeks were leading the rebound.

Prudential saw an eye-catching 14% rise of 39.5p to 309p to top the Footsie risers’ board, while Norwich Union parent Aviva rose 7%, or 22.75p to 355.5p.

Oil prices, which fell below 55 dollars a barrel yesterday, ticked higher to around 58 dollars today amid the stock market gains, which helped a raft of major players.

Heavyweight BP added 34.25p to 505.25p, while Royal Dutch Shell cheered 121p to 1716p – a gain of almost 8%.

Household goods firm Reckitt Benckiser was the leading blue-chip faller as ING lowered its target price on the stock, despite maintaining a buy rating. Shares lost 48p to 2646p.

Elsewhere, shares in IT services firm Logica fell more than 7% despite the company outlining additional cost savings and the second increase in full-year revenue guidance in less than six months. Shares were 5.5p lower at 69.75p.