London trading got off to a positive start after the FTSE 100 rose above the psychologically important 5,000 points barrier yesterday.

US blue chips barely moved off the starting blocks in opening exchanges despite Government data showing US unemployment in August reached its highest level since 1983.

A revival in appetite for UK mining firms, spurred by a rebound in metal prices, helped to push up the UK's benchmark index in early exchanges.

US stocks pushed ahead after a report showed a revival in manufacturing activity in August after a year and a half of contraction.

UK blue chip shares fell following the Bank Holiday weekend as investors locked in profits from miners.

US blue chip stocks edged up in early exchanges, echoing gains in stock markets across Europe and Asia.

Firmer commodity prices lifted mining stocks and led the FTSE higher on Friday following two sessions of losses.

The UK's leading share index powered to a new year high on fresh hopes that an economic recovery in on the cards.

The FTSE 100 continues to advance this afternoon, adding 60.29 points (1.27%) to 4816.87 at 2.30pm.

Northern Rock has announced it will stop paying interest on some of its bonds until further notice.