SHARES enjoyed a much-needed rally on reports of plans for wider stimulus measures in the eurozone and well-received economic data from China.
The FTSE 100 Index climbed 105.3 points, or 1.7 per cent, to 6372.3, its second 100-plus rise in the last three sessions following a volatile period in which investors have been plagued by jitters over the world economy.
Latest data from China, the world's second biggest economy, showed that it expanded 7.3 per cent in the third quarter of the year - the weakest performance in five years, but better than some analysts' forecasts of 7.2 per cent.
The figures gave an early boost to markets and they were further spurred by a Reuters report that the European Central Bank was considering widening its bond purchase programme and could act as soon as December.
The prospect of more stimulus in the eurozone put pressure on the single currency, helping the pound climb by a cent to just below 1.27 euros. But sterling edged lower against the greenback at just over 1.61 US dollars. In Europe, Germany's Dax and France's Cac 40 were both up by around two per cent, while in New York the Dow Jones Industrial Average was also enjoying a rally, with Wall Street boosted by strong quarterly earnings figures from technology giant Apple.
However, in London, chip designer ARM Holdings, whose technology is found in a variety of Apple devices, was the biggest faller in the top flight despite reporting third quarter profits up nine per cent to £101.2 million.
Earnings were driven by accelerating royalty revenues growth and strong demand for ARM's processors, but shares fell five per cent or 45.5p to 806p on slight disappointment at the headline sales figure and fears that its markets are slowing.
Household products group Reckitt Benckiser was another faller after its like-for-like sales growth of three per cent for the third quarter came in below market forecasts, triggering a sales guidance downgrade.
Shares in the Vanish and Cillit Bang firm were two per cent lower, off 105p to 5010p, after chief executive Rakesh Kapoor highlighted a "robust performance in tougher markets" in the three-month period.
The latest supermarket share figures from Kantar Worldpanel offered some comfort for Tesco shareholders after a sales fall of 3.6 per cent in the 12 weeks to October 12 proved to be its best performance since June.
Tesco shares were nearly four per cent or 6.6p higher at 185.9p to continue the rally seen this week.
The biggest risers on the FTSE 100 Index were TUI Travel up 16.5p to 365.7p, Carnival up 101p to 2347p, Ashtead up 40p to 976.5p and Weir Group 91p to 2291p.
The biggest fallers on the FTSE 100 Index were ARM Holdings down 45.5p to 806p, Reckitt Benckiser down 105p to 5010p and Whitbread down 28p to 4200p.
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