FTSE holding firm

The FTSE 100 Index stayed firmly in the black today despite grim eurozone figures showing recession had deepened at a record rate.

Official figures showed output across the 15-nation area using the single currency fell by a record 1.5% between October and December. But the Footsie showed little sign of gloom, up 59.2 points at 4261.4 by mid morning.

The rise followed a late surge on Wall Street overnight as investors cheered the US bail-out plan.

Talk of US government aid to homeowners struggling with their mortgages lifted the mood in the American market.

In London, today’s leading FTSE riser was Thomas Cook, which rose 7% – or 14.75p to 223.75p – as investors were encouraged by yesterday’s trading update.

The firm said losses in the three months to the end of 2008 narrowed by more than half to £27.4m (€30.9m), compared to £53.7m (€60.6m) the previous year and said it was on track to meet expectations for the current year.

B&Q owner Kingfisher also rose, up 5% after an upgrade from brokers at UBS. The shares added 7.2p to 143.9p.

Other firms on the front foot included the London Stock Exchange, up 28.75p to 498.75p after a successor to long-serving chief executive Clara Furse was announced.

Meanwhile property firm British Land added 21.5p to 477.75p, making up ground lost yesterday in the wake of its £740m (€835m) rights issue.