Footsie follows Wall Street lead into positive territory

The FTSE 100 Index closed 7.64 points higher at 5710.66, although it struggled to make headway for much of the session.

United States markets gained more convincingly as figures confirming another rise in US consumer spending last month helped to lift America's Dow Jones Industrial Average by 0.5 per cent.

While the news of a 0.3 per cent rise in consumer spending across the US last month marked a slowdown on the 0.4 per cent seen in January, investors saw the growth as a respectable showing for a weather-hit month.

Investors' fears over the global recovery have also been calmed by last week's European rescue plan for debt-laden Greece, helping the euro to regain its momentum.

The pound likewise strengthened, to 1.11 against the euro and 1.49 against the dollar.

Michael Hewson, analyst at CMC Markets, said the rise came after the decision by ratings agency Standard & Poor's not to change its view on the UK's AAA status ahead of the general

election.

Among stocks, Vodafone was one of the biggest risers, gaining three per cent due to speculation it may see the restoration of dividend payments at Verizon, the US mobile phone operator in which it owns a 45 per cent stake.

Shares rose 4.45p to 151.15p, with the mobile phone sector also expected to be in sharp focus ahead of an imminent report from regulator Ofcom on the amount networks can charge other providers.

In a busy week for Ofcom reports, the watchdog gave ITV a shot in the arm yesterday after it proposed scrapping some advertising airtime rules for commercial broadcasters, which could allow them to raise prices.

Ofcom said that when it last reviewed the requirements it found that ITV1, Channel 4 and Five "had the potential to withhold advertising airtime in order to increase prices".

But the regulator said developments in the television sector – notably the large number of channels available to consumers and advertisers – meant that the channels no longer had the incentive to restrict airtime "since such conduct would be unlikely to deliver more revenue and profits".

ITV rose three per cent in the FTSE 250, up 1.9p to 60.6p, with shares also supported by Royal Bank of Scotland lifting its price target on the stock.

Back in the top flight, a clutch of mining stocks led gains, with Xstrata lifting 381/2p to 12311/2p and Lonmin cheering 50p to close at 2105p.

The session saw the debut of a major new company following the demerger of TalkTalk Telecom from Carphone Warehouse.

TalkTalk – the UK's second biggest broadband firm behind BT with more than four million customers – is valued at more than 1.2bn after its shares lifted 51/2p to 132p.

The split leaves Carphone Warehouse with its 50 per cent stake in Best Buy Europe – its joint venture with the US consumer electronics giant – and a 47.5 per cent stake in Virgin Mobile France.

Carphone Warehouse has a market value of around 620m following the shake-up.

Its shares rose 101/2p to 155p in the FTSE 250 Index.

The biggest Footsie risers were Xstrata up 381/2p to 12311/2p, Vodafone ahead 4.45p at 151.15p, Lonmin up 50p to 2105p and Legal & General ahead 1.9p at 87.05p.

The biggest Footsie fallers were Whitbread down 40p at 1508p, Burberry off 141/2p at 7271/2p, BSkyB down 11p to 584p and RBS off 0.81p at 44.78p.