FTSE 100 soars to highest level in a year

The FTSE 100 has risen to its highest level in a year, although sterling fell once again.

At close the FTSE 100 was up 0.94 per cent or 48.30 points to 5,210.17.

However, sterling was down on the currency markets – after reports interest rates in the UK are to hold below two per cent for five years and confirmation of government plans to sell off a series of assets.

The pound was down 0.35 per cent against the dollar to $1.579 and down 0.79 per cent against the euro to €1.0672 – putting the currency at level last seen in spring.

Over in New York, the Dow was up 0.47 per cent by 11:36 EDT (16:36 BST) and in Chicago the S&P 500 was up 0.61 per cent.

Gains were continued in Europe today, the Dax was up 1.35 per cent and the Cac 40 gained 1.19 per cent.

Leading the gains in London was insurer Old Mutual – up 4.56 per cent – as traders revaluated the value of the firm.

Hedge fund Man Group rose 3.63 per cent, Johnson Matthey climbed 3.02 per cent, and Amec rose 3.13 per cent.

The worst performing stock of the day in London was Lloyds Banking.

The semi-nationalised lender was down 2.54 per cent to 91.61p – as traders continued their negativity over a suggested rights issues.

Thomas Cook was down 2.06 per cent, National Grid fell 1.50 per cent and National Grid slipped 1.50 per cent.