The FTSE has begun positively on Tuesday, up by 47.36 points (+0.89%) to 5341.35 at 10.15am.
Today's strong start follows yesterday's 1.9% blue-chip index surge, where confidence was boosted by the CBI's estimate that the UK will return to growth in the final quarter of this year, and grow by a higher than previously predicted 1.2% in 2010. The FTSE 100 has now climbed by 19.4% in 2009, with the possibility that November's year-high at 5382.67 could be breached.
Today's continued upward momentum has been helped by an upward revision of the UK's third-quarter economic contraction, from -0.3% to -0.2%. However the final revision was widely expected to be better, with a final reading of -0.1% predicted. The figures did show that consumer spending, plus investments and exports were revised higher.
Today's blue-chip leaderboard is dominated by resource stocks, with Monday's highest climber Cairn Energy once again at the top after revealing it will start drilling in offshore Greenland sooner than anticipated. Cairn Energy is up 15.8p (+4.96%) to 334.60p at 10.45am, after jumping by 4.7% yesterday.
The general optimism for a stronger-than-estimated economic recovery has also helped to boost crude oil prices towards $74 a barrel, which in turn has aided Royal Dutch Shell. Just after 10.45am Royal Dutch Shell 'B' was up 2.4% to 1810p, while Royal Dutch Shell 'A' had climbed 2.3% to 1876.5p, with both stocks in the day's leading five on the FTSE 100.
After a generally strong showing yesterday, the banking sector is once again doing well, with Standard Chartered (+1.5%) and Lloyds Banking Group (+1.2%) leading the way.
The broader FTSE 250 is also higher again today, up 67.23 points (+0.74%) to 9167.07, after gaining over 100 points on Monday. In Europe, the German DAX was a more modest 26.7 points (0.45%) stronger, while in France the CAC 40 was up by 27.61 points (+0.71%) to 3899.67.
Looking ahead to the US open, the Dow Jones is currently expected to start around 30 points higher, having risen by 85.25 points (+0.83%) to 10414.14 on Monday. There are a number of noteworthy releases to watch out for later, including the latest Q3 GDP estimate at 1.30pm (London time), plus the October house price index and November's existing home sales, both at 3pm (London time).
