FTSE closes on 6363.9

The FTSE 100 Index jumped 57.7 points to close at 6363.9.

London's blue chips found momentum in afternoon trading after better-than-expected economic data from the US.

Financial stocks continued their torrid run amid lingering concerns about the health of credit markets, exacerbated by the Bank of England's move to pump an extra £4.4 billion into the banking system.

Troubled mortgage lender Northern Rock took the biggest hit, down 33p at 639p after the latest Royal Institution of Chartered Surveyors survey showed house prices had fallen in August for the first time since 2005.

Alliance & Leicester was also off 26p at 937.5p, after woes for the sector were compounded as fellow lenders began to up their rates.

Energy stocks helped offset some of the losses after light, sweet crude reached a record high of more than $80 a barrel on Wednesday and remained well above $79 US dollars a barrel during trading on Thursday.

Oil giants BP and Royal Dutch Shell benefited from the hike, up 4.5p and 30p at 572p and 2044p respectively.

Scottish & Southern Energy rose 24p to 1433p, and British Energy climbed 5.5p to 500.5p, as it built on Wednesday's gains following a broker upgrade which said it should stand to benefit from the rise in the cost of oil.

Brewer Scottish & Newcastle dropped 3.5p to 611p as hopes of a takeover approach from Carlsberg faded following a broker downgrade from Merrill Lynch.

Telecoms group Cable & Wireless was the strongest FTSE riser after broker Cazenove upgraded the stock on the back of indications its UK recovery may be running ahead of schedule.

Shares were up 7.5p at 174.3p - a rise of nearly 5 per cent. BT also benefited from an upgrade, up 9p at 319p.

Winners: Cable & Wireless up 7.5p at 174.3p, Lonmin ahead 121p at 3426p, Anglo American up 92p at 2908p and BT ahead 9p at 319p.

Losers: Northern Rock down 33p at 639p, Alliance & Leicester down 26p at 937.5p and Shire off 32p at 1246p.

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