FTSE on the rebound

The FTSE 100 Index today fought back from a recent run in the red as investors took heart from a positive close on Wall Street.

A slew of interim results also provided some momentum for the London market, which has been rocked over the past week by fears over the global economic recovery.

The Footsie rose 39.9 points to 5149.3, with miners benefiting from the improved confidence.

News from the CBI of a surprise three-year high for retail sales in August provided an additional boost to blue-chip retailers in a welcome return to positive trading on the benchmark share index.

World markets have been shaken in recent days by persistent worries over the state of the US economic recovery, particularly in the wake of dismal figures on home sales and durable goods orders.

The slump took the Dow Jones Industrial Average below the 10,000 barrier yesterday before bargain hunters moved in to ensure the index closed in positive territory.

Futures trading suggested the Dow would see further modest gains today, although caution remains ahead of data on weekly jobless claims.

In London, miners Kazakhmys and Rio Tinto climbed higher by 35p to 1108p and 71.5p to 3176.5 respectively.

The latest retail sales report from the CBI showing the best result since April 2007 - and far better than expected by economists - helped high street players such as Next advance, up 38p to 1970p. Marks & Spencer gained 6p to 340.2p and Burberry lifted by 17p to 844p.

The fallers board included drinks giant Diageo after it reported a 2% rise in operating profits for the year to June 30. The company's shares dropped 16p to 1050p as the Guinness to Johnnie Walker firm failed to shrug off market concerns about its growth prospects.

Property group Segro was the worst hit FTSE 100 stock, down 9.9p to 265.1p, after its interim results missed some analyst expectations, despite news of a 2.3% rise in net asset value.

Shares in bookmaker William Hill were also lower in the FTSE 250, off 1.6p at 165.3p, after tough trading conditions in retail and telephone betting limited growth in half-year profits to 3%.

Estate agency and property group Savills joined it in the red as its cautious interim results comments and recent strong run for shares saw investors take profits off the table.

Shares in the group dropped 4% or 13.3p to 315.3p.