Approaching the close, the FTSE is sitting on impressive gains although slightly off session highs.

Those upbeat earnings from Alcoa last night certainly seem to have set the pace amongst equity traders who once again seem convinced that this latest rally still has legs. Suggestions that the UK could still find its AAA credit rating in jeopardy are attracting little in the way of concern – even Cable has resumed its march higher – although doubtless the fact that inflation is still rising is in turn helping add to the air of confidence. This has been reflected in a solid performance by the banks with HSBC and Barclays only outperformed by BP amongst the blue chips. 

Wall Street has also opened higher despite news of a widening US trade deficit although again optimism over the earnings season is going to be helping here. With numbers due from Intel tonight, the bar has already been set high and any shortfall could easily prove the trigger to start a phase of unwinding. UK unemployment, Eurozone CPI and US advance retail sales will all add to the mix tomorrow leaving the macro economic factors to battle against the corporate news but even if volumes are looking a little on the thin side there’s no argument that the bulls are out in force as we look at the best part of a 100-point gain in London.