The FTSE 100 index edged back above the 5,300 level as the UK market continued to build on its recent rally.

The day started in fairly positive mood, helped by a burst of bid speculation surrounding Standard Chartered. Although the bank denied that it was in bid discussions, the shares were the best blue-chip performers of the session. At its best of the day, the FTSE 100 was up 52.8 at 5,346.0.

But some of the market's heavyweight stocks were not in such good form. BP, the oil giant, suffered from the weakness in the crude price while GlaxoSmithKline continued its recent run of modest weakness.

In the US, the National Bureau of Economic Research declared that the economy had been in recession since March 2001. Although a recession had been widely discounted in the market, the declaration ensured that Wall Street opened in fairly subdued mood. The Dow Jones Industrial Average was about 50 points lower just before the London close.

Footsie closed with a 9.3 point gain at 5,302.5 and the other indices all advanced on the day. The FTSE 250 was up 35.6 5,957.9, the SmallCap 17.0 at 2,630.9 and the Techmark 100 13.37 at 1,563.82.

The latest profit warning came from Trifast, an industrial components manufacturer, which blamed a downturn in technology and telecoms spending.

The UK market has pushed ahead in recent weeks, helped by military progress in Afghanistan, the absence of further terrorist attacks and by hopes that interest rate cuts will prompt a revival in the US and global economy next year. The FTSE 100 is 5.3 per cent higher than its level on September 10th, before the terrorist attacks on New York, Washington and Pennsylvania.

Today sees the publication of the UK pre-budget report. In the past, such announcements have had little impact on the equity market but investors will be watching to see the effect on gilts of the Chancellor's spending and taxation plans.

Turnover was robust with 1.99 billion shares traded by the 6 p.m. count.

Vodafone and MMO continued to be heavily traded.