Another burst of strength in many of the leading cyclical stocks, principally the oil majors and mining shares, produced a good rally in London's equity market yesterday, halting a run of three consecutive loses in the FTSE 100 index.

Wall Street's overnight performance, which saw the Dow Jones Industrial Average, the S & P 500 and the Nasdaq Composite finish higher, gave the initial impetus for London. News of a smaller than expected increase in British retail sales in November, up 0.2 per cent, compared with a consensus forecast of plus 0.3 per cent, also helped.

But it was the powerful performances by those natural resources stocks, interspersed with a sprinkling of individual upside stories, that provided the main upside thrust for the market.

Turnover in equities was 1.46 million shares, well down on recent levels. Market trades totalled 89,850 at 6 p.m.