Markets: When all that glisters isn't just gold

LONDON FTSE 100 CLOSE 6,022.26 +125.39

The Footsie broke back through the 6,000-mark yesterday, boosted by strong corporate results in the US and gold soaring to record highs.

World markets pushed higher as investors took heart from better-than-expected results from corporate giants such as household goods manufacturer Johnson & Johnson and investment bank Goldman Sachs.

Profits from IBM and Intel after the close of the US markets on Tuesday night also boosted sentiment.

The FTSE 100 index closed up 125.39 points, or 2.1 per cent, at 6,022.26 following a 0.5-per cent rise on Tuesday.

Two days of gains have more than wiped out Monday's slide, which was driven by the S&P ratings agency cutting its US credit outlook to "negative".

Ben Critchley, sales trader at IG Index, said: "The cautious tone from the MPC (Bank of England's monetary policy committee] and bullish earnings news from the other side of the Atlantic is certainly helping add to the positive sentiment that's in play for stocks.

"But it's also worth bearing in mind that we're now into the Easter holiday period and volumes are well off as a result, adding to volatility."

The pound was up to $1.64 against the dollar, which was driven down by the strength of commodities.

But sterling was down to €1.13 against the euro after speculation that the European Central Bank would hike interest rates in the eurozone.

The strong results from the US helped markets shrug off Monday's shock downgrade of the US's debt outlook from key ratings agency Standard & Poor's.

The Dow Jones Industrial Average was pushing to fresh two-and-a-half year highs as the London market closed with investors also cheering figures from the likes of Yahoo.

The S&P move was largely behind the fresh high for gold prices as investors flocked to the safe-haven investment and helped other commodities rise in value. Miners benefiting included Xstrata, up 71.5p to 1,530p, and Antofagasta ahead 73p to 1,390p.

Technology firm Arm Holdings topped the leader board - up 32.5p to 608p - after strong first-quarter earnings from US chip company Intel.

Reckitt Benckiser was also near the top of the Footsie risers board after the maker of Cillit Bang and Dettol delivered better-than-expected first quarter figures.

This helped shares recover from recent losses after its boss Bart Becht announced his departure. Its shares were up 125p to 3,302p.

There were only a handful of blue chip firms in the red - led by publisher Reed Elsevier, down 9p to 528.5p. The stocks bucked the wider rally as a number turned ex-dividend, meaning new investors are not entitled to the next dividend payout.

Outside the top flight, Argos and Homebase owner Home Retail Group offered some relief for investors after news of a 13 per cent fall in profits came in line with recent reduced guidance.Shares rose 5 per cent or 11.5p to 220.8p.

This helped fellow FTSE 250 stock Dixons Retail gain 0.5p to 13.7p and B&Q owner Kingfisher lift 10.2p to 277.3p in the FTSE 100.