Financial and mining stocks were the frontrunners in today's market gains, as the FTSE 100 recovered by 4.75%. Hopes of a US bail-out of the troubled monoline insurers lifted sentiment, while traders seem to have taken the breathtaking £3.7bn fraud at SocGen in their stride.
Despite a monoline bail-out still conspicous by its absence, and some poor US housing figures, Wall Street remained in positive territory by the time London closed.
A late rumour that Vodafone was selling its stake in US business Verizon pushed the telecoms group's shares 6.4p higher to 171.5p, but Carphone Warehouse closed 4.25p lower at 287.75p as Goldman Sachs placed 12m shares at 275p. Rumours earlier this month suggested that founder Charles Dunstone was looking to trim his shareholding, but sources denied this deal involved his shares.
Icap remained as the top riser in the FTSE 100, up 82p to 666p, after an upbeat trading statement, while Schroders and the London Stock Exchange also gained more than 10% each.
By the close the FTSE 100 had risen 266.5 points to 5875.8, while the FTSE 250 was 362.6 points higher at 9856.3.
But a word of caution from David Buik at Cantor Index: "Sentiment has changed today, but as the expression goes, if you believe that the bear market is over you believe anything. Take each day as it comes and hope for the best."
