FTSE gets Obama boost

The London market roared ahead today on hopes for the world’s biggest economy after President Barack Obama promised to create jobs and support growth.

The FTSE 100 Index rallied 1.4% higher, up 76.9 points to 5994.6, while markets across Europe made strong gains.

Futures trading suggested Wall Street was also on course for a higher open amid cheer over the US President’s annual State of the Union speech overnight.

Mr Obama called for the lowering of the corporate tax rate as part of efforts to revive the US economy and said there would be a five-year freeze on domestic discretionary spending to cut national debt.

His comments helped switch attention away from yesterday’s dismal UK fourth quarter output figures.

Market heavyweight Vodafone was among those on the rise after solid results yesterday from Verizon Wireless, which is 45% owned by the British mobile phone giant.

Vodafone shares rose 3.6p to 183p.

Oil firm BG topped the risers board after an exploration venture in which it has a 30% stake discovered “high quality” oil in deep waters at an offshore field in Brazil. Shares jumped 50p to 1376.5p, a rise of 4%.

Temporary power firm Aggreko followed it on the risers board after an upbeat broker note from Goldman Sachs. Shares lifted 52p to 1462p.

It was joined by a raft of miners as the wider market bounced back from declines seen after yesterday’s contraction in UK economic output.

Anglo American led the sector higher with a 94.5p rise to 3169.5p.

A downgrade for BP had the reverse effect on the oil giant, with shares dropping 4.3p to 492.7p.

Outside the top flight, WH Smith was 1% higher despite the retailer announcing a further deterioration in like-for-like sales.

Chief executive Kate Swann said the retail chain remained on track to meet forecasts due to its focus on costs and more profitable product ranges. Shares were 3.5p higher at 484.3p.

Embattled sportswear retailer JJB Sports was in the red, down 2% or 0.1p to 4.5p as the FSA hit it with a £455,000 (€528,000) fine for failing to disclose full deal costs when it bought two smaller rivals in 2007 and 2008.

It was a better day for Irn-Bru maker AG Barr, ahead 27p to 1104p, after it said sales so far in the fourth quarter were up 5% despite disruption from last month’s snow.