Footsie moves higher as JP Morgan results buoy banks

The FTSE 100 Index in London hit 22-month highs before closing up 34.59 points at 5796.25, while the Dow Jones Industrial Average on Wall Street rose further above the key 11,000 mark.

It was a similar picture across Europe, with the Cac 40 in France 0.6 per cent higher and the Dax in Germany lifting 0.8 per cent.

JP Morgan's news of a better than expected 54 per cent rise in profits during the first quarter bolstered bank stocks, while figures out earlier from US chipmaker Intel had already set a positive tone.

In economic news, robust data on European industrial production renewed recovery hopes, while US Federal Reserve Chairman Ben Bernanke told Congress's Joint Economic Committee that America's recovery should hold.

A moderate US economic recovery is likely to warrant very low interest rates for a long time, Bernanke said.

Refusing to rule out the risk of a 'double-dip' recession, Bernanke told lawmakers inflation is not an immediate concern, giving the Fed room to maintain its highly stimulative policies.

"The Federal Open Market Committee has stated clearly that they currently anticipate that very low, extremely low rates will be needed for an extended period," Bernanke said in response to questions from lawmakers of the Joint Economic Committee.

Among UK banks, Barclays was up 101/2p to 3731/2p and Lloyds Banking Group was 7/8p ahead at 641/2p.

Chip designer ARM Holdings was a top flight beneficiary of Intel's results in London, with shares standing 31/4p higher by the close at 2351/2p.

Elsewhere in the top flight, BT Group leapt to the top of the risers' board with a 53/8p gain to 1291/8p, while software firm Sage added 33/8p to 258p.

Meanwhile, mining firms were clawing back some of the ground lost on Tuesday, helping the Footsie move forward. Eurasian Natural Resources moved 48p higher to 1245p and Xstrata added 30p to 1291p. Oil prices also broke a five-day losing streak to gain ground, helping the likes of Royal Dutch Shell, which rose 261/2p to stand at 19171/2p.

Marketing and media giant WPP crept onto the risers' board, adding 141/2p to 7051/2p. The firm said it would return its tax headquarters to the UK if Conservative plans to exempt overseas profits from corporation tax were adopted.

The leading Footsie faller was Legal & General, which dropped 13/4p to 913/4p after turning ex-dividend, meaning new investors were not entitled to the latest dividend.

Other ex-div stocks were support services firm Capita, down 5p to 793p and prospector Tullow Oil, which shed 5p to 1315p.

Hedge fund firm Man Group was off 7/8p to 2713/8p after a negative week for its AHL fund following a strong recent run, although Shore Capital brokers kept the stock at buy.

Outside the Footsie, shares in design and engineering giant WS Atkins jumped 221/2p to 672p after the firm said trading had been better than expected in the three months to March due to cash controls and recent

contract wins.

Home maintenance firm Homeserve was another riser, up 102p to 1897p, after it announced the acquisition of a US-based firm and benefited from a buy note issued by broker Seymour Pierce.

The biggest Footsie risers were BT Group, Eurasian Natural Resources and Barclays.

The biggest Footsie faller was Legal & General.