FTSE boosted by travel firm collapse

The FTSE 100 put on 1.8 per cent today, with a travel firm''s collapse and the strength of commodities shares buoying the index.

Mining firms Eurasian Natural Resources, Anglo American and Rio Tinto led the gains, rising by 8.46, 7.54 and 6.42 per cent respectively.

The demise of travel operator XL also boosted rival firms, with TUI Travel and Thomas Cook putting on 5.64 and 5.74 per cent.

However, the property and financial sectors continue to languish.

Homebuilder Wolseley was the day''s biggest loser, with shares dropping by 5.26 per cent.

HBOS and Friends Provident were not far behind, posting losses of 2.88 and 2.02 per cent.

Nevertheless, good news for banks could be around the corner – with it seeming increasingly likely that credit crunch-hit Lehman Brothers will soon find a buyer.

Speaking to Bloomberg, Kevin Lilley at London Asset Management explained: "The market is up today because the US government has stepped in to help find Lehman a buyer."

"Finding a resolution to the Lehman situation is what is most important for the market."