Market climbs as US shrugs off miserable US GDP data

UK shares climbed in afternoon deals, buoyed by the US's ability to shrug off worse than expected first quarter GDP numbers.

The FTSE 100 was up 93.19 points, or 2.27%, at 4189.59, just a few points shy of day highs.

Winners outnumbered losers by 89 to 12 and only one stock was unchanged.

The FTSE 250 finished the day up 202.8, or 2.83%, at 7357.98.

The US economy shrank much more than forecasters had been expecting in the first quarter but investors were cheered by the massive run down in inventories and a better than hoped for reading on consumer spending.

In the first three months of the year, the US economy shrank by 6.1% - just better than the 6.3% contraction in the last quarter of 2008, but much more than the 4.7% that the market had predicted.

Investors though focused on the strong consumer contribution and hopes increased that government spending and the rundown in inventories will mean GDP will contract less in future quarters.

The market's ability to shrug off bad news is one of signals many strategists identify as a key sign that a bear market is over.

After upbeat confidence and housing data yesterday and hopeful that today's FOMC will provide further cheer, buyers pushed the DJIA up 161.69 points, or 2.02%, to 8,178.64 and the S&P 500 up 18.56 points, or 2.17%, to 873.72.

Oil was up as US data showed a big draw on gasoline stockpiles but a much bigger than forecast rise in oil inventories. Future dated Brent was up 93 cents, or 1.86%, at $50.92 and WTI was 1.2% higher at $50.72.