Another Christmas boost for FTSE

The London market's Christmas rally showed little sign of fading today as eager buyers pushed the blue-chip index close to a year high.

The FTSE 100 Index came within 10 points of the previous November high amid thin trading volumes, although downbeat data from the US dampened the gains late in the session.

The top flight finished the day 43.7 points up at 5372.4 after a surprise 11% fall in new homes sales in the US during November.

"After a touch-and-go year in global markets, it seems that the Christmas spirit has brought at least some renewed optimism for investors," IG Index chief strategist Anthony Grech said.

There was little movement in shares after it emerged the Bank of England voted unanimously to keep interest rates at their record low and maintain the money supply programme at its current value.

The pound was little moved against the dollar following the news but remains below the 1.60 level breached yesterday after a smaller than expected upward revision to UK output between July and September.

Oil stocks, which have been responsible for much of this week's rally, posted further gains today after a surprise fall in oil inventories in the US pushed crude prices up sharply to $76 a barrel.

Heavyweights BP and Royal Dutch Shell enjoyed a decent session, adding 6.8p to 604.3p and 19.5p to 1827p respectively.

But the strong run seen by Cairn Energy after it announced news of drilling progress off the coast of Greenland finally came to an end as shares fell 14.7p to 324.6p, or 4%.

Mining firm Eurasian Natural Resources topped the Footsie risers board with a gain of 33p to 901p or 4% thanks to rising copper prices.

It was joined at the top of the risers board by peers Randgold Resources and Xstrata, which cheered 184p to 5115p and 29.5p to 1071.5p respectively.

Standard Chartered was the leading bank with a rise of 31.5p to 1578.5p. Barclays added 3.05p to 275.5p and HSBC lifted 10.9p to 714p.

Outside the top flight, shares in Ideal Shopping Direct fell 4.5p to 121.5p after the home shopping firm announced a £5m (€5.6m) deal to buy the gardening products business set up by its founders two years ago.

The shares element of the deal could result in Paul Wright, Valerie Kaye and related parties holding a stake of more than 40%, although Ideal said this would not result in a takeover offer.

Elsewhere, shares in entertainment retailer HMV fell 1.35p to 96.5p after it boosted its position in the live music market with the £46m (€51.2m) takeover of MAMA Group.

The biggest Footsie risers were ENR up 33p at 901p, Randgold 184p higher at 5115p, British American Tobacco up 60.5p at 2027.5p and Xstrata 29.5p higher at 1071.5p.

The biggest fallers were Cairn Energy down 14.4p at 324.6p, BT Group off 4.3p at 137.5p, RBS down 0.52p at 28.41p and United Utilities which finished 8p down at 494.5p.