Hopes that the continuing gloom in Europe would spur central banks into further stimulus measures triggered a rally on world markets today.
The FTSE 100 Index rose 95.2 points to 5,586.3 as traders speculated that the US Federal Reserve will pump more money into the economy at its meeting this week, while a fall in inflation to 2.8% gave the Bank of England more leeway to act.
A multibillion-pound merger involving Alliance Boots also helped put the retail sector on the front foot.
Alliance Boots exited the London market in 2007 in an £11billion private equity deal, but it still managed to excite investors after announcing that US counterpart Walgreens would pay £4.3billion for a 45% stake, with an option for the rest in three years.
Elsewhere in the retail sector, Premier Inn and Costa coffee chain owner Whitbread was the biggest riser in the top flight after impressing investors with a 4.5% rise in first quarter like-for-like sales. Shares were up by 118p to £19.67.
There was also a much-needed boost for Home Retail Group after Argos posted flat like-for-like sales in the last quarter, much better than City expectations. Shares jumped 24% or 17.5p to 91.9p, while rival Kingfisher rose 10.7p to 284p and Marks & Spencer was 9.6p higher at 335.6p.
The biggest Footsie risers included Eurasian Natural Resources ahead 20.9p at 435p, Weir Group up 66p at £15.03 and BG Group ahead 53p at £12.84.
The biggest Footsie fallers were Tate & Lyle down 8.5p at 638p, Morrisons off 2.6p at 276.3p, Intertek down 24p at £25.71 and Diageo off 11.5p at 1,590.5p.
Elaine McLachlan, of investment manager and financial planning specialist Brewin Dolphin in Inverness, noted that the day’s Scottish risers included Melrose Resources up 9.2% to 116.5p, Plexus Holdings up 6.1% at 109.6p and Optos rising 5.1% to 186.5p.
Fallers included Superglass off 6.9% at 13.5p and soft drinks maker A.G. Barr falling 1% to 416.7p.