FTSE advances 1%

Financial stocks and miners were in demand today as the FTSE 100 Index advanced 1%.

The Footsie rose 51 points to 5313.6 after a volatile session on Wall Street finished strongly overnight, helping the blue-chip index begin on the front foot.

Heavyweight mining stocks – hit by a late sell-off yesterday – underpinned the gains while hedge fund giant Man Group also returned to favour after a 9% slide yesterday.

Dealing rooms shrugged off a spike in UK inflation to a 17-month high, with the pound largely unmoved at 1.44 against the dollar. The Bank of England said inflation was likely to be back at its 2% target within a year.

Futures markets also signalled a higher opening on Wall Street, where economic data on housing and inflation as well as results from the world’s biggest retailer, Wal-Mart, are likely to determine where stocks finish.

In London, mobile phone giant Vodafone made early progress after operating profits of £11.9bn (€13.8bn) bettered previous guidance, helped by strong trading in emerging markets such as Africa and India.

The mobile phone giant also reported an improved revenues trend in the UK, although the company’s shares lost some of their earlier momentum to stand 0.2p higher at 136.55p amid worries over stiff competition in India.

Hedge fund Man Group was the leading top flight riser as traders decided that its 9% fall in the wake of yesterday’s deal for rival GLG looked overdone. Earlier worries over the steep $1.6bn (€1.2bn) price were put aside as Man gained 11.5p to 213.4p.

Miners largely rose as earlier jitters over the potential impact of an economic slowdown in China. The exception was leading faller Randgold Resources, down 75p to 6030p as gold prices eased.

Insurer Prudential followed it lower – down 3.5p to 531p – after yesterday’s record rights issue to fund its Asian expansion plans.

Investors were also tracking British Airways shares after it won a court ruling against a series of five-day strikes by cabin crew.

Shares rose 2p to 202.5p although travellers will still face some disruption this week as the ruling came too late to reinstate schedules.