Footsie advances despite downbeat US jobs figures

London's Footsie is trading at levels not seen since late April – up 45.63 points to 5681.39 – on renewed hopes over the global recovery, despite news of the first cut in US private sector jobs for seven months in September.

The Dow Jones Industrial Average in America also overcame a weak opening as the autumn stock market rally continues apace.

Sentiment was lifted as investors expected the US jobs report would add to prospects for more action to further stimulate the economy from the Federal Reserve.

The Bank of Japan unexpectedly cut interest rates on Tuesday, supporting the view that other governments will act further to bolster an uncertain economic recovery.

UK policymakers decide on interest rates today amid mounting pressure to take action to help the recovery, although they are not expected to change rates or extend quantitative easing this month.

The pound weakened ahead of today's rates decision, down to 1.14 euros and just holding firm at 1.59 US dollars.

The top flight benefited from another decent session for mining stocks after the improved recovery hopes lifted base metal prices and crude oil increased to around 83 US dollars a barrel.

Anglo American rose 1101/2p to 2752p, Kazakhmys advanced 56p to 1483p and Lonmin was up 4 per cent, or 67p to 1790p.

There was also a 5 per cent gain for British Airways as it launched its transatlantic tie-up with Iberia and American Airlines. Shares were up 111/2p to 2661/8p, which added to the 6 per cent rise seen on Tuesday after it posted better-than-expected traffic figures.

BA's rally was given further momentum by low-cost rival easyJet, which raised its profits forecast and said the cost of disruption to European airspace caused by the Iceland volcano was likely to be less than expected. EasyJet shares topped the FTSE 250 Index risers' board with a gain of 12 per cent, or 463/8p to 4331/4p.

Elsewhere in the second tier, shares in Dunelm soared after the homewares chain continued to defy forecasts with a surprise rise in like-for-like sales.

The firm, which has 106 stores under the Dunelm Mill name, reported growth of 2.1 per cent, beating City expectations that its sales could fall by as much as 5 per cent.

Shares were up 223/8p to close at 4275/8p.

Back in the top flight, shares in supermarket chain Sainsbury's fell 21/2p to 3871/8p, despite better-than-expected sales figures for the second quarter.

The UK's third biggest grocery chain saw like-for-like sales excluding petrol but including VAT in the 16 weeks to October 2 increase from 1.1 per cent in the previous quarter.

The group said non-food – identified as a key area for the supermarket, which includes electrical goods, homeware and clothing – was growing at three times the rate of food.

Among other major Footsie losers was software group Autonomy Corporation, after it warned it will miss market expectations for its full-year revenue by around 3 per cent, triggering a 16 per cent, or 301p, drop in shares to 1551p.

Shares in Greggs fell 10.3p to 464.7p yesterday after the bakery chain said sales growth slowed in recent weeks as consumers reined in their spending on sandwiches and snacks. The company said like-for-like sales were up 0.2 per cent in the 13 weeks to October 2, compared with 0.7 per cent in the first six months of its financial year.

The biggest Footsie risers were Man Group ahead 105/8p to 2373/4p, Essar Energy up 221/8p to 5031/2p, British Airways and Anglo American.

The four biggest fallers were Autonomy Corporation, Admiral Group off 74p to 1590p, Arm Holdings down 103/4p to 3891/4p, and Centrica off 51/4p to 3213/4p.