British stocks enjoyed another session of widespread gains yesterday, taking the FTSE-100 at its best to within nine points of the 6,000 level and the two junior indices the FTSE Mid-250 and SmallCap to intra-day and closing highs.
The performances of all the main indices was a celebration of Wall Street's three-figure surge overnight, itself a continued response to the Federal Reserve's decision to leave US rates on hold, plus relief at events in Asian markets.
Hong Kong and Singapore delivered good gains after Indonesia's President Suharto bowed to international pressure and resigned.
The day's economic data presented a mixed picture for the market. British high street retail sales in April rose by the slightest of figures, up 0.1 per cent, well below the consensus forecast of plus 0.5 per cent, and were well received.
But there was concern that M4 money supply data showed the measure expanding at an annualised 10.3 per cent in April, compared with a consensus forecast of 10.1 per cent.
Remarks suggesting that British economic growth is slowing, made by a member of the Bank of England's monetary policy committee, Mr Willem Buiter, were seen as positive especially as Mr Buiter had previously been seen as one of the more "hawkish" members of the committee.
With Mr Buiter shifting his stance, the chances of a rise in British interest rates after the next monetary policy committee meeting, scheduled for June 3rd with the committee's decision on rates due to be announced at midday the following day are viewed as much reduced.
Further reference to a slowing in economic performance came from Mr Eddie George, governor of the Bank of England, although he also pointed to the worryingly high increase in average earnings announced last week.
But the FTSE-100 finished the day well off its best, affected by a dip in the Dow Jones Industrial Average, which came off its best in midafternoon.
The FTSE-100 closed 28.2 ahead at 5,935.6, having raced up to a session high of 5,991.1, up 83.7, not long after trading started.
The other FTSE indices made rapid progress, the FTSE Mid-250 finishing at a record high of 5,854.5, up 29.0, after touching a peak of 5,861.7 in mid-afternoon. The FTSE SmallCap, meanwhile, continued its seemingly relentless advance to fresh highs, closing 8.0 up at a record close of 2,782.3 after an intra-day high of 2,782.6.
Again, there were rumblings of discontent about the relatively low levels of activity in equities, although this was partly put down to the closure of most European markets because of the Ascension Day holiday. Turnover at 6 p.m. was 778.5 million shares, with non-FTSE 100 shares accounting for 61 per cent of the total.
One of the day's big features was the scintillating debut of Computacenter, whose shares moved to a substantial premium to the offer price.
Takeover rumours resurfaced, especially in food retailing where Safeway returned to the limelight. Among companies reporting results, Storehouse's news that it is expanding its British Homes Stores chain was well received, pushing the group's shares up 12 1/2p to 256p.
But a negative trading statement from Hamleys, the toy stores group, saw its shares tumble 19 1/2p to 274p.
Brokers also marked up Whitbread 8p to £10.10. The City liked the new look of the company, now focused on its branded pubs, drinks and hotels. The float made millionaires out of 30 company employees, including its founders, who have pledged to give millions to charity.
Gas and Electricity generator PowerGen fell 16p to 765p after annual results showed profits up by just 1 per cent to £580 million.
