Morning Market: Wall Street confidence revives UK markets

Wall Street's buoyant response to a positive outlook for the US economy from the Federal Reserve policy committee and evidence of growing consumer confidence at home combine to give UK markets a robust start to trading, with the threat of a flu pandemic pushed into the background for the time being

By 8.30am the FTSE 100 index was up 50 points at 4,239 and the Mid-250 index was 103 points higher at 7,460.

Banks were encouraged by a stronger performance from their US peers with Barclays 15.5p higher at 272p, additionally helped by a UBS rating upgrade.

Upbeat production reports from Anglo American at £14,89, up 48p and Kazakmys, 27p better at 537p gave an extra lift to the mining sectors.

Better-than-expected results boosted BSkyB 28p to 493p and Smith & Nephew 8.5p to 492.5p, but Cadbury dipped 17p to 492p after a mixed update.

Among insurers Admiral Group gave up 22p to 928p as Munich Re reduced its stake to 10.2% and a 20% fall in life and pensions sales overshadowed Standard Life at 192.3p, off 0.4p.

In properties Hammerson eased 2.to 314p after its interim management statement.

A Morgan Stanley rating upgrade contributed to a 10p rise to 189p in Invensys, but a downgrade from the same broker clipped 5.5p from Millennium & Copthorne at 219p.

DSG International put on another 3p to 40.5p after confirming a £310 million fundraising.

3i Group picked up 10.5p to 333.5p in spite of shareholder opposition to the £700 million cash call and positive comment on yesterday's results underpinned Punch Taverns at 135p, up 17p.