British blue-chips pushed higher this afternoon as the FTSE 100 index benefited from an early jump on Wall Street, solid banking and insurance stocks and a surge by supermarket chain Sainsbury.
British blue-chips pushed higher this afternoon as the FTSE 100 index benefited from an early jump on Wall Street, solid banking and insurance stocks and a surge by supermarket chain Sainsbury.
A weekend press report suggested Sainsbury, Britain's third-largest grocery group, might be snapped up by U.S. buy-out firm Kohlberg Kravis Roberts.
A source close to the U.S. firm said it was not eyeing the company, but Sainsbury shares still added 4.2 per cent on hopes of a bid.
The FTSE 100 was up 47.2 points, or 1.1 per cent, at 4,334.8 by 15:20, although volume was a modest 1.3 billion shares. Global banking group HSBC and oil giant BP were the two stocks giving the most support to the index.
The Bank of England announces a decision on interest rates on Thursday, with most economists predicting rates will go up to per cent as signs of an economic recovery build.
Figures today showed British manufacturing output shot up last month at its fastest pace since 1996 and retail sales growth at a 1-1/2 year high.
The mood was also upbeat in New York, where a survey from the Institute of Supply Management put U.S. manufacturing output at its highest level since January 2002. The Dow Jones index was up 0.9 per cent.
Financials dominated the gainers list as investors sought out stocks with exposure to an improving economy and rising equities.