China growth provokes optimism on London market

The FTSE 100 Index held onto recent gains today as strong Chinese growth added to the positive sentiment in global markets.

The fastest growth in three years for the world's third biggest economy lifted Asian markets, keeping the Footsie 3.1 points ahead at 5799.4 and near to 22-month highs.

Shares have also been helped by stronger-than-expected earnings from Wall Street giant JP Morgan in a positive beginning to the US earnings season, although traders were marking time ahead of a slew of figures on the US economy.

Jobless claims, industrial production figures and housing surveys due later are likely to set the tone for the rest of the session when US markets open. Wall Street's Dow Jones Industrial Average was expected to begin on the back foot.

The pound was meanwhile boosted against the dollar after an opinion poll showing a widening Conservative lead - reaching 1.55 at one point.

Sterling was largely steady against the euro at 1.14, although the single currency dropped against the dollar on more market wobbles over Greece's precarious fiscal position.

There was little in the way of corporate news in London today, although banks enjoyed a strong session after an upgrade for European players from brokers at Exane BNP Paribas. HSBC and Barclays gained 13.6p to 705.6p and 6.6p to 380.1p, while Royal Bank of Scotland was 0.6p dearer at 45.6p.

The leading Footsie faller was credit checking firm Experian, whose trading update flagged up a return to growth for its main North American market.

Organic growth of 2% for the overall group disappointed the market however and left the shares down 20.5p or 3% at 614.5p.

Elsewhere annual figures from food producer Uniq said the current financial year had started well, but this was overshadowed after it posted a wider full-year loss due to continued pension woes.

The company, which makes sandwiches and desserts for retailers including Marks & Spencer, saw its share price fall 4.25p to 22p or 16%.

Shares in easyJet lost ground after the disruption to services caused by ash from Iceland's volcanic eruption moving into UK airspace. Shares were 1.4p lower at 483.6p.

Another faller in the FTSE 250 was department store chain Debenhams following results yesterday.

Despite forecast-beating profits and UBS lifting its target price on the company, shares in the firm were down 1.5p to 76.4p.