The FTSE 100 has ended the day higher in relatively quiet trading after soaring 8 per cent during the previous session.

The index finished 49.1 points up at 4291.7 after the third-biggest one-day rise ever for blue-chip stocks on Wednesday. In New York, the Dow Jones Industrial Average was 56.8 higher at 9047.8 by 5pm.

An announcement by the Federal Reserve that interest rates had been cut by 0.5 per cent boosted markets overnight but figures confirming the first quarter of contraction for the world's largest economy since the early 1990s saw Wall Street pare gains.

In London, the top flight soared by as much as 2.4 per cent at one stage after news of the 0.3 per cent US GDP decline for the third quarter.

Miners dominated the FTSE risers board, with Kazakhmys ahead 12 per cent or 32.75p to 301.25p, Vedanta Resources up by 105.5p to 775.5p and Antofagasta

ahead 29.75p to 367.25p.

A busy day for corporate updates drew a mixed response in the City, with AstraZeneca and Rolls-Royce both higher but Royal Dutch Shell slipping amid the wider profit taking.

Shell posted bumper third-quarter profits of £6.6 billion, but shares dropped 81p to 1589p, as investors weighed up falling production output and took profits after strong gains for the oil sector on Wednesday.

Life and pensions firm Standard Life was also under pressure for a time as it reported flat sales and noted a difficult outlook. But reassuring comments on its capital strength shone through and Standard later stood 13p higher at 213p.

Other insurers were buoyed by the overall message from Standard, with Friends Provident ahead 6.7p at 66.7p and Norwich Union firm Aviva 26p stronger at 350p.

There was a positive reaction to Rolls-Royce's trading update, which lifted 9 per cent or 26.24p to 314.25p after it reported £5 billion of new orders since June 30 and said current trading was in line with expectations.

Pharmaceuticals giant AstraZeneca also rose 5 per cent after it upped its earnings guidance and reported better than expected third quarter profits. Shares were up 127p at 2550p.

Advertising group WPP was another blue-chip riser, even though boss Sir Martin Sorrell warned that 2009 will be a "very tough year". He accompanied this with a weaker than expected revenues performance in the third quarter, causing shares to open lower.

However, the stock later rallied to leave WPP 9 per cent or 31p higher at 363.5p.

Transport firms were suffering amid the recession fears, with analysts raising concerns that rail passenger volumes could be hit.

Stagecoach was the worst affected in the sector, down 15.3p at 176.9p, followed by FirstGroup, which fell 25.25p to 392p.

The FTSE winners were Old Mutual up 9.2p at 60p, Vedanta Resources up 105.5p at 775.5p, Cairn Energy ahead 204p at 1550p and Amec up 62.5p at 493.25p.

The losers were Admiral Group down 190p at 900p, Stagecoach Group down 15.3p at 176.9p, British American Tobacco down 129p at 1690p and FirstGroup off 25.25p at 392p.

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