Bright US data lifts FTSE as UK economy wallows

Positive economic news from the US was enough to push the FTSE up today (July 29th), despite a host of negative reports on the state of the UK''s finances.

The Confederation of British Industry reported large falls for retail sales and the Bank of England showed that mortgage lending slumped to its lowest level since records began.

However, there was brighter news from across the pond, as lower oil prices and data showing consumer confidence was rising were enough to ensure the FTSE 100 ended trading fractionally up at 5319.20.

While the US data was enough to drive up the blue chip index overall, the UK''s gloomy economic outlook did result in some casualties.

High street retailer Woolworths saw its shares fall nearly 15 per cent on the back of news that it expects to miss analysts'' forecasts for the year because of recent sales slumps.

Directory Yell also struggled amid continued concerns about its long-term funding. It closed down 6.49 per cent at 72.

News that BP''s second-quarter net income rose 28 per cent was not enough to entice investors. The company''s shares closed down at 506.75, influenced by oil falls and the claim from OPEC president Chakib Khelil that prices could drop back towards $80 a barrel in the near future.

Elsewhere, talk of a merger between British Airways and Iberia was enough to tempt investors to ignore fears about fuel costs. Shares in the UK flag carrier ended up nearly six per cent at 248.50.