Nasdaq

UK stocks have regained some of the ground lost yesterday as the indicators which drove the market down - oil and the US dollar - are now moving in the other direction.

Oil prices and mining were firmly back on the agenda again today, as the price of a barrel of oil rose close to $50 again in New York this afternoon and pushed the value of dependent firms downwards.

Today's trading on the FTSE 100 index was dominated largely by the UK Government's plans to ban smoking in public places, driving down share prices of the tobacco companies and pub chains.

The FTSE 100 closed up at its highest level in almost 2½ years by close of business on Friday, as the index ended just six points from the 4800 threshold.

Final call on the US election could yet be at least a couple of weeks away, but global stock markets are already reacting positively to Bush's as the FTSE 100 has crossed the 4700 barrier for the first time in two years.

Drugs giant Shire Pharmaeuticals helped the FTSE 100 index to cross the psychological 4,600 barrier again this afternoon, after announcing it has distribution approval in the US.

Shares on the FTSE 100 index suffered a setback today largely because the continued pressure on oil prices is beginning to take its toll on firms such as British Airways.

There was talk in the market of a takeover at Prudential by HBOS, however, the banking group quickly quashed any such suggestions to leave the FTSE 100 almost flat at close of business.

Prudential had a bruising day after announcing it would need more financial help to develop for the future, but the FTSE 100 still had plenty to lift the spirits.

Warnings about the impact of interest rates on new house build demand caused the FTSE 100 index to close down on Tuesday, along with continued profitability pressure from the oil price.