Strong corporate news lifts FTSE

The FTSE 100 Index up 42.6 points to 4590.1 in mid-morning trading

Strong corporate news has helped the FTSE 100 Index recover its poise after a stumble in the previous session caused it to miss out on a record-breaking rally.

Investors' confidence was given a boost by reports from the likes of Abbey's Spanish owner Santander and Dairy Milk firm Cadbury.

The Footsie lost out on a record-beating winning streak with a fall on Tuesday after 11 consecutive gains. But it was back in positive territory with a rise of 18.7 points to 4547.5.

The rise came despite a slide on Wall Street after an official report on US manufacturing revived investor nerves. The Dow Jones Industrial Average fell 0.7% in early trade. Oil also took a tumble - down below 65 US dollars a barrel - amid signs that US consumers are cutting back on energy costs.

In London, signs that the housing market may have reached the bottom following Bank of England mortgage approval figures also helped confidence - despite lending to businesses falling year-on-year for the first time in more than a decade.

Banks were among stocks on the front foot, with Royal Bank of Scotland ahead more than 3% or 1.495p at 43.495p and Lloyds Banking Group up 2.52p at 83.8p. The improvement came after Santander said UK pre-tax profits rose by more than 30% as it reported improving conditions in lending and bad debts.

A broker upgrade helped fund manager Schroders leap to the top of the Footsie leader board, with a rise of more than 4%, up 42p to 951p.

Meanwhile Cadbury said sweet-toothed consumers in the UK have helped it offset difficult conditions elsewhere. The firm reported underlying half year pre-tax profits of £262 million, up 11% at constant currency rates on a year earlier. Shares were 10.5p higher at 575p after it also raised its margins guidance for the second half, while.

Rexam led a shortened fallers board, down another 22.5p to 253.75p or 8% after it launched a £351 million cash-call to protect its credit rating. The stock has lost more than 20% since the beginning of the week.

But the results season mostly benefited a number of second-tier stocks, with car dealership Inchcape up almost 19% or 4p to 26.5p after beating expectations with a half-year profits fall of 58% at constant currency rates. Low-cost airline easyJet also rose after it predicted it would be one of the few operators to make a profit this year. Shares added 10.25p to 288p.