The FTSE and Dow Jones share markets have both rallied on the back of positive gains on the Asian markets.

US stocks rose more than 10 per cent on Tuesday, the second-biggest point gain ever for the Dow and S&P, after investors scooped up beaten-down shares.

The surge came on news that the US Federal Reserve and other central banks may cut interest rates further.

Meanwhile, better-than-expected results by oil giant BP has helped the FTSE 100 claw back losses.

The index briefly climbed above the 4000 barrier before closing 73.8 points higher at 3926.4 - a gain of 2 per cent and the first positive session since Thursday.

BP was a prominent riser after shattering City expectations with third-quarter profits of £6.4 billion.

The 148 per cent rise on a year ago lifted BP 5 per cent, or 23.5p to 461.5p.

But BP was surpassed by Norwich Union parent Aviva, which topped the Footsie risers board for a while with a 17 per cent surge and was up 13.75p at 259p at the close.

Fellow insurer Friends Provident was also up 14.3p to 65p and car insurer Admiral was ahead 75.5p to 868.5p, but Legal & General fell 8p to 60.9p and Prudential dropped 28.25p to 248.25p.

HSBC rose as well, ahead by 15.25p to 678.25p. HBOS added 7.6p to 68.6p, but Barclays fell 11.4p to 180p and Lloyds TSB was off 7.4p at 162.5p.

Other top flight risers included Royal Dutch Shell, which reports its third-quarter results on Thursday. The stock added 68p to 1528p in the wake of BP's strong numbers.

Oil and gas explorer BG Group joined the group on the risers board, up 7 per cent, or 46.5p to 710.5p after making a bid for Australia's Queensland Gas Co.

Oil prices moving up from recent lows put fuel-dependent stocks on the back foot, with British Airways down 6.6p at 117.9p and cruise operator Carnival down 106p at 1409p.

Other strugglers included retail giant Marks & Spencer, which was marked down by brokers at Pali International ahead of results next week. M&S shed 4.5p to 219.75p.

Winners: Friends Provident up 14.3p at 65p, British American Tobacco ahead 204p at 1800p, HBOS up 7.6p at 68.6p and Admiral ahead 75.5p at 868.5p.

Losers: Eurasian Natural Resources down 36p at 270p, Legal & General off 8p at 60.9p, Prudential down 28.25p at 248.25p and Icap off 26.75p at 268.5p.

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