London shares close higher boosted by strong Wall Street, financials

LONDON (AFP) - Leading shares closed strongly, boosted by strength in financials and a firm showing on Wall Street, and buoyed by the price of crude falling below the 50-dollar mark, dealers said.
At the close, the FTSE 100 index was 22.2 points higher at 4,681.8, off earlier highs of 4,701.5, with the wider markets all posting hefty advances.
Volume was average with 2.4 billion shares changing hands in 234,767 deals.
Vodafone was the most traded stock with 205 million issues being exchanged, followed by Shell Transport and Trading Company which saw 79.8 million shares switch owners.
Meanwhile, at London's close, the DJIA was up 42.70 at 10,235.30, on gains in the semiconductor sector.
Sentiment was further boosted by the news the price of oil was retreating after peace deals in Nigeria eased concerns over supply.
In London, oil majors were also in focus after BP issued an in-line third-quarter trading statement, with broker reaction to the update mixed.
Cazenove said BP's headline production growth number could disappoint, as might the scale of its non-operating charges -- 600 million dollars before tax.
Shares in the major were down 5-1/2 at 534-1/2.
In response, Cazenove raised its third-quarter pro forma net income estimate to 4.2 billion dollars from 4.1 billion and reiterated its 'outperform'.
CAI Cheuvreux, however, called the trading update "pretty much in line", but also noted that downstream comparatives are getting tougher with softness appearing in some markets, and higher volumes in lower margin businesses.
Cheuvreux recommended a switch to Shell shares, down three pence at 412.
Elsewhere, strength in financials issues continued to provide support, with improving equity market valuations giving a boost to fund management groups and insurers.
Asset manager Amvescap was up seven pence to 315 helped by interest from the ISIS Asset Management placing book-build, hedge fund manager Man Group added 16 pence to 1,251 and 3i group rose 16-1/2 to 587-1/2.
Among the insurers, Prudential firmed 3.03 percent to 475-1/2 to finish the day the top blue chip gainer, while Friends Provident was up 3-1/2 at 146-1/2 and Royal and Sun gained 3/4 pence to 75-1/2.
In the banking world, strength in equity markets was added to by vague sector consolidation hopes again, with Barclays shares up 12 pence at 556 and Lloyds TSB ahead 5-3/4 at 443-3/4, both said to be potential targets for the world's biggest bank, Citigroup.
Reports that Banco Santander Central Hispano SA could raise the cash element of its 8.2 billion pounds bid for Abbey National bank and offer fewer shares, lifted Abbey National 12-1/2 to 583-1/2.
BAE Systems was the day's second best performer, up 3.02 percent at 238-1/2, on the back of positive comment from Cazenove. The broker raised the defence contractor to 'outperform' as it said Eurofighter is poised to sign a lucrative deal.
Diageo also moved higher after the drinks giant announced it is to sell 49.9 million shares in General Mills.
Dresdner Kleinwort Wasserstein reiterated its 'add' rating on Diageo, noting the disposal is good news for the shares and the sale was not expected in such a rapid time frame.
Shares were 16 higher at 712-1/2.
But on the downside miners were hit by a dip in precious metal prices.
Anglo American was 26 lower at 1,315, Xstrata, 18 lower at 917, BHP off 9-1/2 at 585-1/2 and Rio Tinto, 19 lower at 1,500.
But it was peer Antofagasta that ended the day the biggest loser, losing 2.35 percent to 1,120, hit further by a downgrade to 'sell' from 'hold' on valuation grounds by Deutsche Bank.
Real estate issues were also weaker on the back of a switch from defensive issues, with Land Securities the second biggest faller, down 2.28 percent at 1,158, while British Land lost four pence to 744-1/2, and Liberty International slipped five lower to 827.
Among mid cap issues, bid interest -- real and imagined -- was the main feature.
Shares in Manchester United jumped 13-3/4 to 271 after the Premiership football club confirmed it has received a preliminary approach regarding a possible offer for the company.
Manchester United did not disclose the identity of its suitor but it is widely believed to be 19.2 percent shareholder Malcolm Glazer, who earlier this year indicated he might be prepared to bid.
Meanwhile Invensys shares jumped 8-3/4 at 12-1/4 on heavy volumes, with dealers highlighting the usual takeover speculation for the group -- Siemens of Germany remains the main bid candidate.
Shares in alternate carrier Thus also felt the benefit of bid speculation, rallying 0-1/4 pence higher to 15 after weekend press reports noted talk of venture capital interest in the troubled firm.
And Virgin Mobile top the midcap risers, up 12-1/4 pence at 188-1/2 after weekend press comment suggested Richard Branson should take the group back into the fold of its privately owned business.
Away from bid talk, shares in pubs group Mitchell and Butlers added 10 pence to 280-3/4 after being upgraded to 'buy' from 'hold' by Deutsche Bank in a British pubs review.
The advertising sector gained, with Aegis up 5-1/4 at 103-3/4 and blue chip peer WPP up nine at 531-1/2 as investors became more bullish on cyclical stocks.