David Buik Comments: FTSE Close - This Is Money

The FTSE 100 Index surged 1.4% today as investors were cheered by decent economic news and corporate results from across the Atlantic. Wall Street's Dow Jones Industrial Average gained more than 1% early on after strong numbers from the likes of Asda owner Wal-Mart and Home Depot, as well as a bigger than expected leap in industrial production. This left London's blue-chips up 74.5 points at 5350.6 as UK inflation - which fell to 3.1% in July - also failed to spring any unpleasant surprises. The pound saw a weaker day, falling below 1.21 euros and 1.56 against the dollar.

Commentators cited relief at successful bond auctions by the Irish and Spanish governments boosting the single currency, while the greenback was helped by the stronger industrial data. Market sage David Buik, of BGC Partners, reckons its all down investors covering short positions. He said: 'There is little doubt that the market has been "short" and there is evidence of covering short positions today. So, with small volumes prevailing we have seen the FTSE 100 rally by 1.1% at 5334, which is probably more than it deserves to be up.'

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David Buik Comments: FTSE Close - This Is Money

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