Economic cheer lifts FTSE above 5800 benchmark

The IMF is sending a team to Athens at the request of the Greek Government, although investors instead focused on Chinese growth hitting a three-year high and strong US manufacturing figures.

The FTSE 100 Index closed 28.76 points ahead at 5825.01, although Wall Street's Dow Jones Industrial Average was sluggish in early trading after Wednesday's 100-point surge.

The number of US workers filing new claims for jobless aid soared last week as the backlog from the Easter holiday was processed, adding to worries about the economic recovery, while US industrial output rose less than expected in March.

Initial claims for state unemployment benefits rose 24,000 – the largest increase in two months – to a seasonally adjusted 484,000, the Labor Department said. Markets had expected a dip to 440,000.

"Everything on the manufacturing side is clearly pointing to an acceleration," said Phil Orlando, chief equity market strategist at Federated Investors in New York.

The pound was flat against the dollar at just below 1.55, although it lifted above 1.14 euros.

The single currency dropped a cent against the dollar on more wobbles over Greece's precarious position.

Currency traders will also have kept an eye on the debate between the UK's main political parties yesterday.

There was little in the way of corporate news in London to drive equity markets, although banks enjoyed a strong session after an upgrade for European players from brokers at Exane BNP Paribas.

HSBC topped the Footsie leaderboard with a 201/2p rise to 7121/2p, or 3 per cent, while Barclays cheered 95/8p to 3831/8p. Royal Bank of Scotland was 1p dearer at 46p and Lloyds Banking Group added 7/8p to 653/8p.

BP was also a gainer, cheering 97/8p to 653p as it rode out a protest resolution at its annual meeting calling for greater scrutiny of the assumptions behind its controversial Canadian oil sands project. The leading Footsie faller was credit checking firm Experian, whose trading update flagged up a return to growth for its main North American market. Organic growth of 2 per cent for the overall group disappointed the market however and left the shares down 181/2p, or 3 per cent at 6161/2p.

Elsewhere annual figures from food producer Uniq said the current financial year had started well, but this was overshadowed after it posted a wider full-year loss due to pension deficit woes.

Uniq is saddled with the pension problem as a hangover from its previous incarnation as Unigate, with former milkmen among the member scheme.

The company, which makes sandwiches and desserts for retailers including Marks & Spencer, saw its share price fall 5p to 211/4p, or 19 per cent.

Shares in easyJet lost ground after the disruption to services caused by ash from Iceland's volcanic eruption moving into UK airspace. Shares were 11/4p lower at 4833/4p.

Another faller in the FTSE 250 was department store chain Debenhams following results on Wednesday. Despite forecast-beating profits and UBS lifting its target price, shares in the firm were down 11/8p to 763/4p.

The biggest Footsie risers were HSBC, Petrofac ahead 36p to 1261p, Barclays and Shire ahead 33p to 1463p.

Biggest fallers were Experian, Home Retail Group off 63/8p to 2875/8p, British American Tobacco down 381/2p to 21851/2p and Associated British Foods sliding 12p to 958p.