The FTSE 100 Index has surged higher as more stable oil prices helped deliver a long-awaited Santa Claus Rally on global markets.
Strong overnight trading on Wall Street and Asia saw the FTSE 100 jump more than 1% higher, up 77.5 points to 6160.6, with a modest recovery in the cost of crude raising hopes that commodity prices have hit bottom and are stabilising.
But experts said thin trading volumes ahead of the Christmas holidays were also behind the end-of-year stock market bounceback, which comes after a punishing six months for equities.
Miners were leading the charge in London, with Glencore the biggest blue chip riser with a 5% gain, up 3.9p at 89.7p.
But it was another poor session for retailers, with small-cap chain Game Digital becoming one of the early Christmas casualties after it warned over profits due to weaker-than-expected computer game sales.
It said half-year underlying earnings were expected to fall to around £30 million – a drop of 30% on a year earlier.
Shares plunged by more than a third, down 70.3p to 135.5p.
In the top flight, Next and Burberry were also lower amid fears that Christmas trading has been a washout this year due to record mild weather, down 22.5p to 7172.5p and 4.5p to 1705.5p respectively.
FTSE 250 retailers were also suffering, with luxury shoe brand Jimmy Choo off 3.5p at 124.1p and Ted Baker down 111p at 3072p.
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