Global confidence pushes FTSE ahead

London shares have cantered ahead as markets around the world benefited from a surge in confidence.

London shares have cantered ahead as markets around the world benefited from a surge in confidence.

The strong start for the FTSE 100 Index - up 27.4 points at 4430.1 by lunchtime - came after the Hong Kong market enjoyed its strongest close for two weeks.

Hopes that the threat of bird flu appeared to be subsiding cheered the Hang Seng, while London shares also picked up on the back of forecasts for a strong opening to shares in New York.

Even surprisingly weak manufacturing output figures failed to unsettle the top flight index, which shrugged off several days of weakness to pull clear of the 4400 mark.

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The optimism came as a busy week for corporate results kicked off with a strong third quarter performance from airline British Airways.

BA shares surged almost 3 per cent or 8.5p to 296.5p as profits of £125 million for the three months to December 31 came in at the top end of market expectations.

However, the airline was beaten to the top of the Footsie risers board by miner BHP Billiton - up 15p to 460.5p - as sentiment remained strong in the sector. Xstrata also lifted 20p to 678p, while Rio Tinto added 35p to 1421p.

There was also a rise for Friends Provident after a weekend press report said the life insurer could be the subject of a £3.5 billion takeover bid. Friends shares gained 2p to 144.25p. Elsewhere, confirmation from Vodafone that it was considering an offer for AT&T Wireless in the United States failed to unsettle its shares, which rose 1.25p to 136p.

The City is braced for a rush of results from heavyweight companies in the next few days, including BP tomorrow. The oil giant benefited from positive sentiment ahead of the figures, with shares up a penny at 422p.

Rival Shell, which disappointed the market with its own figures last week, fell 1.25p to 347.5p.