FTSE on the up despite gloomy forecasts

The FTSE 100 Index advanced today despite Chancellor Alistair Darling’s gloomy predictions of soaring borrowing and the worst year for the UK economy since the Second World War.

A 3.5% decline this year will be followed by better-than-expected growth of 1.25% in 2010, Mr Darling said, but markets were focussing on comments from his US counterpart Tim Geithner.