Footsie reaches new high as US jobs data inspires

The FTSE 100 Index was little moved by the announcement of the expected May 6 poll date, but traders instead seized on Friday's upbeat United States jobs figures in their first chance to react after the Easter break.

The Footsie rose near the 5800 mark early in the day amid buoyant sentiment and eventually closed up 35.46 points at a 22-month high of 5780.35

Dealing rooms were more focused on prospects for the world's biggest economy on the other side of the Atlantic after the better-than-expected jobs data fuelled optimism over the speed of the US recovery.

The Dow Jones Industrial Average was flat in early trading although investors were expected to take their cue from minutes of the Federal Reserve's latest meeting that is due later.

The pound endured a rocky start against the dollar after the jobs news prompted speculation that the Federal Reserve could soon raise rates, although it later pulled back to stand just above 1.52. Worries over Greece meanwhile, pushed the pound near 1.14 against the euro.

The improved economic sentiment has seen oil prices soaring further in recent days, with crude oil hitting nearly $87 a barrel – the dearest since the peak of the financial crisis back in October 2008.

In the UK, oil stocks were higher thanks to the surging cost of crude. BP advanced 15p to stand at 646.3p or two per cent and Royal Dutch Shell found itself ahead 301/2p at 1860p.

Base metal prices were also cheered on by the news as Eurasian Natural Resources added 41p to 1266p.

In an otherwise quiet day for corporate news, Royal Bank of Scotland was up 1/4p to 44.95p amid reports over bids for the 318 branches it is selling to ease competition concerns.

Virgin Money – one of the main contenders for the branches – yesterday confirmed 100m backing from US tycoon Wilbur Ross to help to finance its high street bank plans.

Virgin Group founder Sir Richard Branson said: "I am delighted that WL Ross has decided to invest and partner in our vision for a new way of banking.

"Our ambition is to make everyone better off through good value and transparent products backed by a great customer experience."

Insurer Admiral was a prominent riser after a positive note from Bernstein Research, which suggested the group could claim a 15 per cent market share in the UK and overtake Direct Line as the market leader in the next decade. Shares rose three per cent, or 35p, to 1367p.

Telecoms firms continued to ease back after last week's news from Ofcom that it planned to cut the charges networks could charge each other for connection. Vodafone fell another 2p to 149.65p.

Drug giants GlaxoSmithKline and AstraZeneca were also under pressure for much of the day as investors moved their money out of more defensive sectors.

The Government said yesterday it was cutting back its swine flu vaccine deal with GlaxoSmithKline. It will pay two thirds of the original value agreed on the contract but receive just over a third of the doses.

Astra was down 261/2p to 29191/2p, although Glaxo pulled back losses to finish 31/2p up to stand at 12601/2p.

The four biggest Footsie risers were ENR up 41p to 1266p, Man Group ahead 7.6p to 252p, Kingfisher up 6.7p to 223.6p and Kazakhmys, which rose 48p to stand at 1630p.

The biggest fallers were British Airways down 5.6p to 243.3p, Petrofac off 21p at 1265p, and Vodafone down 2p to 149.65p.