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Traders cited a short squeeze is GKN which helped to lift the engineer, but there were also signs that the American heartening because market is continuing its recovery - sales in November were up 17pc on the previous year.

GKN has previously named North America as a "key target market" and the company told analysts in August that it hoped to increase its share of the market from 33pc to 45pc in 2014.

Analysts at Jefferies described the because sales data as a positive for GKN and should – at the very least – provide a "feeling fillip". Sense certainly did seem to be on GKN's side yesterday as the shares climbed 15 to 210 p.

Sage surged up 18 to 289p. Having beaten full-year profit expectations on Wednesday, the accountancy software company benefited from positive broker sentiment. Numis upped its stance on Sage to "add" from "hold", p. encouraging growth in the UK and continental Europe.

Amongst the latter-liners, Marston's gained 6.3 to 106 7q after the pubs and brewing group posted profit before tax of ￡ 52 5 m, up from ￡ 21 4 m last time.

Ralph Findlay, chief executive, said: "We have adapted well to market conditions and trends." "We are benefiting from our focused, differentiated strategy as demonstrated by our robust results in 2010 and a strong start to the new financial year."

Analysts at Killik kept their "buy" rating, saying:

"In managed pubs, the success of the group's food offer and new-build strategy continued to drive growth." Like-for-like sales during the year were 1.7% ahead of last year, with food up 2.5% and wet (i.e. beer) up 1.4%. Recent trading (in the eight weeks to 27 November) has seen an acceleration in growth to + 3.0%. "Encouragingly, it looks as if this has been achieved without the need for additional promotion, with operating margins up by one percentage point on the year, largely as a result of tight cost control, lower utility costs and the disposal of 17 lower margin leasehold sites operational."

3. 15 pm: Rachel rollercoaster continues at Desire Petroleum

Ever-volatile Desire Petroleum was in demand as the explore said it had made an oil discovery in the Falkland Islands.

Desire said that preliminary tests at its closely watched Rachel North well indicated it is an oil find sending soaring up to 132 75p 26.75 - gold 25pc - Desire.

Analysts at Evolution Securities said:

"Desire has this morning announced that the Rachel North well has intersected 57 m of net oil pay which is excellent news." Wireline logging is ongoing but initial indications are that the thickest section has good porosity which bodes well for any future flow test and therefore commerciality of the field. "We upgrade to Add and a target price of 180p."

Desire's surge came as the wider market raced ahead. The FTSE 100 gained around 98 points to 5740.67 as the European Central Bank delayed the withdrawl of its stimulus measures.

Jean-Claude Trichet, European Central Bank president, said the central bank will delay its withdrawal of emergency liquidity measures to combat "acute" market tensions. Trichet said the ECB will keep offering banks unlimited loans through the first quarter. The bank will also continue to buy government bonds.

Driving up the leaderboard GKN, which was manufacturing car and change shares. Traders were p. US as sales, which rose 17pc in November from a year earlier.

11. 15 am: TUI Travel leads charge

TUI Travel was enjoying a day in the sun, jumping 14.4 to 228 8 p to top the leaderboard large-cap.

Investors piled into the travel company after its full-year results came in at the top end of market forecasts.

Analysts at Numis kept their "add" rating, saying:

"The statement reads well and TUI reports that it has seen a" sustained improvement in demand since July. "" However, the macro environment remains uncertain. We would highlight two key issues. Position at Corsair agreement has been reached with employees for a turnaround plan. and, secondly, for Summer TUI expects to have minimum cost inflation whilst Thomas Cook said yesterday that it expected 2% cost inflation. "This puts in TUI a strong competitive position."

TUI's rise helped the FTSE 100 gain around 35 points to 5677.44. Speculation that the European Central Bank may announce further measures to stem the region's sovereign debt crisis also lifted feeling.

Analysts at Royal Bank of Scotland said:

"Thursday's ECB meeting could send the first signal that the central bank is on course to step up its purchase program: we continue to look for EEUR100bn of purchases by the beginning of next year, including Spanish securities."

They added:

"With financial contagion gathering pace across countries and sectors, we reiterate our view that there is an urgent need for the ECB to intervene in the market, so as to send a powerful message to global investors that the central bank stands ready to provide an unlimited line of defence for the euro area."

Goal GlaxoSmithKline missed out on the rally. Britain's biggest drug maker shed 9.5 to ￡ 12.21.5 after advisors to the US Food and Drug Administration recommended against wider use of Glaxo's prostate drug Avodar.

9 am: FTSE climbs after Asian stocks rise sharply

Frankfurt's DAX 30 0 42pc to reach 6,895.77 and gained in Paris the CAC 40 pink 0 71pc 3,695.57 to.

Miner Rio Tinto was one of the biggest early risers, up 5pc 2 to 4, 312p after a jump in metal prices.

Rolls Royce, which has endured a month-long scrutiny after one of its Qantas A380 superjumbo engines suffered a blow-out over Indonesia, fell 1. 610p after it emerged Qantas would file a compensation claim to 29pc against them.

Asian stock markets rose sharply on Thursday after improved economic indicators powered big gains on Wall Street that followed - on in Asia.

The overall share rally continued overnight as Japan's Nikkei 225 stock average surged 1. 8pc 10,168.52, hitting its highest level in intraday to more than five months at one point.

Hong Kong's Hang Seng index was up 0. 9pc 23,458.74 and the Shanghai Composite index advanced to 1. 6pc to 2,868.49.

On Wednesday, the Dow Jones Industrial Average rose more than 2pc to 11,255.78 in its biggest gain since September 1 after positive employment figures and growing speculation that the European Central Bank could step up its purchases of government debt boosted confidence.

Wednesday's market report:

FTSE today: market report - as it happened Dec 1, 2010

Betfair sinks below float price as FTSE 100 conscientisation

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