Glimmer of better news lifts the FTSE

Higher oil stocks and a brief respite in the eurozone debt crisis helped global markets push higher yesterday.

Despite a slow start, the FTSE 100 Index finished 62.29 points higher at 5,490.15 after the eurozone bail-out fund received a reassuring level of demand as it tapped the money markets for short term funding for the first time.

Michael Hewson, market analyst at CMC Markets, said: “Equity markets have had a more positive bias. However, caution remains about the overall outlook in the face of the situation in Europe, with markets slipping from their highs in the afternoon session.”

Oil industry firms were higher after Citigroup raised its forecast for Brent crude next year to as much as $120 a barrel, up from its previous estimate of $86 a barrel, amid supply disruptions.

Royal Dutch Shell was up nearly 3 per cent or 63p to 2,388p and BP lifted 7.7p to 452.25p, while oil and gas facilities firm Petrofac topped the FTSE 100 risers board with a gain of 70p to 1,443p after it also said it expects to deliver like-for-like profits growth of at least 20 per cent in 2011.

In currencies, the pound remained steady after inflation of 4.8 per cent for November came in as expected, suggesting that cost of living pressures may be starting to ease. Sterling rose to a new nine-month high of €1.18 against the euro but was slightly lower against the US dollar at $1.55.

Premier Inn and Costa owner Whitbread was the biggest faller in the top flight after disappointing the City with slow quarterly revenues growth.

Whitbread’s shares were 4 per cent or 62p lower at 1,514p as it said like-for-like sales growth slowed to 2.4 per cent in the 13 weeks to 1 December, compared with 3 per cent in the 39 weeks to the same date.

Other fallers in the retail sector were Tesco, down 2p at 389.5p, and B&Q owner Kingfisher, which dropped 2.3p to 245.8p.

However, Carpetright shares made strong gains in the FTSE 250 Index, despite revealing that underlying profits fell 86 per cent to £1.4 million.

The decline was not as large as analysts feared and the company said it was optimistic about trading in its second-half when it would benefit from revamping its bed and laminate flooring ranges. Shares rose 31.6p to 427p.

Shares in Thomas Cook were 3 per cent or 0.45p lower at 14.8p as the company geared up for annual results today by announcing the sale of its stake in five hotels and a golf club in Spain. The sale reduces Thomas Cook’s mammoth borrowings.

Among the Scottish firms, Edinburgh-based CCTV systems maker IndigoVision saw shares fall by a further 8 per cent yesterday after former chief executive Oliver Vellacott indicated he was prepared to fight to regain control of the firm. Shares fell 22.5p to 257.5p.

l NEW YORK: Wall Street suffered a late sell-off last night in a volatile session after the US Federal Reserve gave no hints of new stimulus measures to offset the effects of the worsening European debt crisis.

The Dow Jones industrial average was down 71.03 points, or 0.59 per cent, to end at 11,950.36 while the broader Standard & Poor’s 500 Index was down 11.18 points, or 0.90 per cent, to finish at 1,225.29. The Nasdaq Composite Index closed down 33.78 points, or 1.29 per cent, at 2,578.48.