FTSE hits highest point in three months

The FTSE 100 Index reached its highest point for almost three months today amid global signs that the worst of the global recession could be over.

US Federal Reserve comments that the economic outlook had “improved modestly” and GDP figures showing recovering consumer spending boosted markets, as well as better Japanese manufacturing data.

With Asian markets on the front foot, the Footsie was 82.9 points higher at 4272.4 by mid-morning, touching levels not seen since early February.

The advance in London was driven by banks as the better economic news improved risk appetite among investors while more positive broker comments helped the sector.

Part-nationalised Royal Bank of Scotland was the leading top-flight riser, up 18% or 6.7p to 43.5p, its highest since January.

It was closely followed by Barclays, which saw an 11% gain of 28.25p to 285p - a six-month high – after upgrades from both UBS and RBS brokers. Lloyds Banking Group completed the banking trio heading the risers’ board, up 11.2p to 114.7p.

Investors also had plenty of corporate news to chew over. Satellite broadcaster BSkyB was 15p up at 480p, or 3%, after its big push into HD television appeared to be paying off in healthy third-quarter results.

But Dairy Milk maker Cadbury was 10.25p down at 498.25p after disappointing the market with 2% sales growth in the first three months of the year.

The leading Footsie faller was Standard Life, down 3.8p to 188.9p or 2% after a 20% slide in worldwide life and pension sales.

In the FTSE 250, Currys and PC World owner DSG International saw shares rise 9% or 3.5p to 41p after the company announced plans to raise £310.6m (€346m). The gains came despite a steep rise in debts and disappointing second-half trading figures.