With markets on both sides of the Atlantic buoyed by the Barack Obama effect on US election day, the FTSE 100 headed north for the sixth day in a row.
The leading index closed 196.22 points higher at 4639.5, its highest level since 3 October. If the run extends to a seventh day tomorrow, it will be the FTSE 100's best performance since July 2005. However, a John McCain win - however unlikely that may seem given his current standing in the polls - would probably see a rather different outcome.
But such thoughts could not disrupt the day's buoyant mood. Even Teun Draaisma, the Morgan Stanley strategist who called the bear market correctly, has now come close to being a full on bull, saying: "The more prudent investor may wish to stay in cash and not be overweight equities, but our advice is not to be short or underweight any more."
Miners were among the main gainers, as volatile metal prices took another turn for the better. Copper rallied around 8% as the dollar weakened, while nickel and zinc were also up around 5%. So Kazakhmys rose 59.5p to 397.25p, while Antofagasta - which reported a 23% rise in third quarter copper production - added 19.5p to 416.25p.
BHP Billiton was 83p better at £11.58 and its bid target Rio Tinto rose 235p to £31.35. The European commission has sent BHP its statement of objections to the deal, which are believed to revolve around competition concerns in the iron ore market. BHP said it would work with the commission to resolve the issues; this could involve a sale of parts of the merged businesses.
An 8% rise in the US crude price to nearly $69 after suggestions that Saudi Arabia had made substantial production cuts pushed BP 25p higher to 533.25p and Royal Dutch Shell B shares up 141p to £18.50.
Banks were also better, in the main, with Barclays bouncing 14.4p to 185.9p and HBOS climbing 10.6p to 116p. Even Royal Bank of Scotland, which had fallen earlier on news of more writedowns and rising bad debts, ended the day unchanged at 65.2p.
Carphone Warehouse climbed 5p to 148p as it gave more details of its expansion plans following its tie-up with US retailer Best Buy. UBS analysts said:
"Plans have been released for the rollout of big box stores in the UK and long term goals. Stores will be over 30k square feet with a multi-channel offer. Up to 10 stores could open in 2009-10, with 100 possible by 2012-13 in our view."
UBS has cut its price target from 250p to 200p - partly to account for the start up costs of the new stores - but maintained its buy rating.
On the way down was bus and train group Stagecoach, 11p lower at 184.2p on concerns that a sustained UK recession could knock its business, particularly on its London commuter lines.
Punch Taverns fell 13.5p to 170p after the pub group unveiled a £20m fall in full year profits to £262m and warned of "extremely challenging" conditions in September and October. Nigel Parson at Evolution Securities said:
"We think that the post-Christmas period could be very problematic. We are concerned that 20% to 30% of the estate may prove to be unviable and it is no surprise that Punch took a pub impairment charge of £295m – both managed and tenanted. If it survives it has years of painful de-levering, restructuring and sub-inflation performance ahead. Investors should use share price bounces to exit the stock."
Elsewhere, there was a smattering of takeover speculation, with vague talk of a possible merger between retailers Game Group, up 19.75p to 149.75p, and HMV, 10p better at 11.25p. Traders said this seemed a tad unlikely given the two companies were likely to be concentrating on the key Christmas trading period.
On Aim, Encore Oil slumped 54% to 13.75p after it said its Esmond gas storage project in the North Sea may need to be redesigned. But Australian exploration group Allied Gold added 2p to 13p as chief executive Mark Caruso and finance director Frank Terranova came to London on an investor roadshow, presenting to existing and potential new investors.
