FTSE 100 continues to climb

The FTSE 100 continued recent gains on Wednesday reaching its highest level since September 2008.

At the close of trading, the London index was up 1.98 per cent – or 101.95 points to 5,256.10.

As UK unemployment rose to 2.47 million, but the rate of increase slowed, the share market bounded forward led by the miners.

Kazakhmys rose 9.42 per cent, Cairn Energy gained 8.62 per cent, Vedanta climbed 7.71 per cent.

Xstrata rose 7.68 per cent and Barclays gained 6.56 per cent.

International Power was down 2.85 per cent, Thomas Cook lost 2.36 per cent and Guinness-brewer Diageo slid 2.05 per cent.

In New York, the Dow was up 1.13 per cent at 11:51 EDT (16:51 BST) and Chicago's S&P 500 was up 1.28 per cent.

David Jones, chief market strategist at IG Index, said: 'Today has seen a strong performance by equities, with the UK market reaching fresh highs for the year.'

He explained Rio Tinto iron ore production had pushed forward miners, and banks had benefited from JPMorgan seeing a rise in profits.

'Unsurprisingly, this steady flow of expectation-beating third-quarter results from the US is increasing investor appetite for equities,' he said.

'For FTSE traders, the US remains an economic yardstick and positive company news stateside will continue to help London shares.

'When you add the slowing unemployment rates seen today – a statistic that often seems to lag behind other indicators in heralding economic health – the overall picture is looking pretty upbeat for equity investors.'