FTSE rises as retail giants rally

Vodafone are to reveal half-yearly results

Next and Marks & Spencer has enjoyed strong gains after posting reassuring updates on trading.

The retail giants were joined by other big names in the industry as investor sentiment was soothed by the rosier representation of high street conditions.

Next powered close to the top of the FTSE 100 Index risers board after it said the consumer climate had been "more benign than we anticipated".

The wider market rose 35.6 points to 5072.8 as the retailer rally combined with a rebound across world indices to help the Footsie off its recent lows. On Tuesday the market crossed below the psychologically important 5000 mark. Fashion chain Next was up 6% - or 108p higher at 1918p - after lifting its sales forecasts for the rest of the year.

Meanwhile, M&S climbed more than 5% after reporting profits of £298.3 million for the six months to September 26 and a decent start to the third quarter. The high street bellwether's figures, which were above market expectations for the group, helped shares cheer 18.7p to 359.7p. Argos and Homebase firm Home Retail Group added more than 6%, or 17.4p to 301.3p while B&Q owner Kingfisher was 7.8p dearer at 231.9p.

Meanwhile, the part-nationalised banks had a reversal of fortune after the shake up. Royal Bank of Scotland clawed back some of Tuesday's 7% fall following the announcement of break-up plans and a £25.5 billion capital injection from the state. Shares were up 1.07p to 37p. But Lloyds Banking Group was a chief faller having topped the winners in the wake of its rights issue announcement and avoidance of the Government's toxic asset scheme. Shares were down 0.83p at 86.5p.

Among the other blue-chip stocks in negative territory were index heavyweights GlaxoSmithKline and Royal Dutch Shell, down 10.5p to 1218p and 20.5p to 1740.5p. The duo turned ex-dividend, meaning investors are no longer entitled to the latest payout.

Housebuilders dominated the risers board in the FTSE 250 Index after Taylor Wimpey said market conditions were "significantly better" from July 1 to date than last year, with cancellation rates at 16%, against 46% in 2008. It is also looking to push through higher selling prices.

The company's shares rose 7% or 2.78p to 39.75p, while Persimmon topped the risers, up 34.8p to 418.1p and Barratt Developments lifted 9.4p to 130.3p.