(MENAFN- ProactiveInvestors) Britain's blue chips ended Tuesday 41 points ahead at 6542 as retailers supported the top flight index but reesource stocks weighed.
There was also economic data pleasing investors not least the bigger than expected slowdown in UK inflation- causing optimism for the wider economy.
The inflation rate halved in December to 0.5% equal to the lowest figure ever recorded.
The annual rate declined from 1% in November helped by collapsing fuel costs.
Prices are now rising at their slowest rate for 15 years.
This sparked hopes that consumers would go out and spend more and that an interest rate rise would no be pushed further back.
However the spectre of deflation was also mentioned by some and the negative connotations of that for a global economy.
The Dow Jones Industrial Index in the US is up over 137 points at the time of writing.
Supermarket Morrison ()and baker () were among standout risers.
Morrison gained almost 5% as the fourth largest UK grocer said Canadian boss Dalton Philips will leave after the year end results.
He was brought in five years ago to right the ship and the move comes after lacklustre Christmas trading figures with underlying sales falling 5.2% in the six weeks to January 4.
() also gained 3.64% on the day while British Gas owner () added 4.14% to 2718p after moved its rating on the firm to 'overweight' from 'equalweight'.
Shares in airline giant IAG () added 4.22% while () gained 1.53% as Jefferies lifted its price target on both stockls.
In the smaller caps Africa focused budget airline () continued its ascendency up over 35% to make it one of the biggest gainers in London.
Elsewhere ( ASX:FTE) rocketed in London as the group suspended its shares on the Australian stock market ahead of a resource upgrade Thursday.
The dual-listed minerals company is expected to report on progress at its Kuriskova uranium project in Slovakia.
Listing rules on the ASX differ from London’s junior market hence the shares advanced on AIM today where they were still being traded.
() surged 50% as it has confirmed plans to return a total of US$15.4mln in cash to shareholders and cancel its listing on AIM.
It comes after the group decided in December to curtail efforts to acquire new projects.
Leyshon had previously been in active talks over possible deals though the steep fall in oil prices made the assets unattractive and as such negotiations came to an end.
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