Surge for FTSE

UK blue chip stocks rallied for a second session today after a fightback for financial firms and miners.

The FTSE 100 Index rose another 2% today, up 98.1 points to 5136.1, after a 2% rebound last night.

Asian markets performed well overnight, while confidence was also boosted by a much-needed gain for the euro after the single currency set a new four-year low against the dollar yesterday.

The single currency was up 1% to $1.23, although it was down against sterling, with the pound at €1.18.

Futures trading also pointed to a higher opening on Wall Street as investor optimism returns.

In London, mining and financial stocks were again on the front foot as investors eyed bargains following the market’s recent slump to an eight-month low.

Hedge fund giant Man Group set the pace with a gain of 15.3p to 230.7p, but eyes were on insurer Prudential as it raced 6% higher, up 31p to 543.5p, with speculation swirling around its £24bn (€28.36m) deal to buy AIA.

Vague trader rumours suggested Pru may pull the planned takeover before putting it to shareholder vote.

Fellow life and pensions group Aviva was also making strong advances, up 18.5p to 318.4p.

Vedanta Resources led the miners higher with a gain of 118p to 2291p.

Outside the top flight, defence research group Qinetiq jumped 13% after new chief executive Leo Quinn announced details of a major restructuring.

The company posted a bottom-line loss and will suspend dividend payments for a year, but shareholders approved of Mr Quinn’s strategy as shares rose 15p to 131.3p.

There was no such rally for JJB Sports, which is also under pressure after reporting losses of £68.5m (€81m) for the 12 months to January 31. Sales have picked up since then, but JJB shares still tumbled 1.25p to 19p.

News of a return to profits at the publisher of the Daily Mail and General Trust helped the FTSE 250 stock rise nearly 2%, up 6.9p to 478.9p.

It reported a 42% leap in underlying pre-tax profits and revealed a revival in advertising revenues that has continued into the second half.

Also in the second tier, Tate & Lyle dropped 3.5% with a 15p fall to 409.6p as reported plans to sell off its sugar business failed to materialise.

This overshadowed full year profits in line with expectations, down 7% at £229m (€270.76m).