The upward run on the FTSE continued in early trading this morning, with London’s leading index standing at 4293.9, up 56.2 points (1.33%) by 10am.

Other major European indices posted similar gains this morning; the DAX gained 71.4 points (1.49%) to 4853.1, while the Cac 40 rose around 40 points (1.30%) to 3121.8.

Large FTSE gains were seen in the mining and oil sectors. The top two FTSE positions were held by Fresnillo and Tullow Oil, adding 28.0p (5.25%) and 46.5p (5.22%) respectively; as Tullow Oil announced its Jubilee development plan had been formally approved by the minister of energy in Ghana and Fresnillo reflected higher metals prices.

The banking sector was also bullish with a rally on Goldman Sachs buoying sector sentiment - Barclays gaining 14.7p (4.9%) to 314.7p in early trading. RSA Insurance also featured, lifted by talk of bid interest from Generali, rising 4.7p (4.0%) to 122.3p.

These gains offset any negative sentiment following the news this morning that UK unemployment has reached a 10-year high, with the jobless rate increasing to 7.6% - exceeding economists’ expectations of 7.4%. In the three months to the end of May, the number of Britons out of work increased by 281,000, which is the largest quarterly drop since records began in 1971. [1]

The biggest FTSE losses this morning were seen from ICAP and BT Group. By 11am, ICAP dropped 6.8p (-1.5%) to 436.3p over fears that a decline in market turmoil might hit profits; meanwhile, BT Group fell 1.65p (-1.57%) to 103.4p ahead of today's AGM.

Looking ahead, a range of economic indicators will feature across the pond this afternoon. CPI data, the Empire State manufacturing survey, capacity utilisation data and industrial production figures are due in the US.

[1] Source: FT Website (15 July 2009)