Market overview: US oil inventories fall unexpectedly

LONDON (ShareCast) - 1530: Weekly oil inventories: Crude supplies fell 4m barrels last week and gasoline stockpiles dropped 300,000 barrels. Experts had expected an increase. Oil prices are higher on the news.

1500: The US ISM non-manufacturing index dropped to 50.6 in October from 50.9 the month before. Economists had predicted an increase to 51.5.

1440: footsie is fighting shy of breaking back above the 5200 level but it is not far off it. Defensive favourites such as pharmaceuticals companies Glaxo and Asta, and utilities such as SSE and Severn Trent are failing to participate in the advance, as is Guinness owner Diageo after it announced a $500m bond issue this morning. FTSE 100 is up 55 at 5,092.

1319: Risers outnumber fallers by about four to one among FTSE 100 constituents, with miners and stores leading the way higher. Shopping centre owner Liberty is enjoying the positive vibe for all things retail after the company said that since the end of July, several indicators 'have confirmed the improving conditions in the property investment and debt markets in which the group operates.' FTSE 100 is up 39 at 5,077.

1315: US payroll services firm ADP said US private sector unemployment increased by 203,000 in October. It has revised the September gain to 227,000. The figures are regarded as a reasonable guide to official US non-farm payrolls figures, which are due out on Friday.

1208: Home Retail has displaced Next as the day's best performing blue chip, up 6.5% from last night's close. GlaxoSmithKline, Shell and Intertek are weaker after going ex-dividend Wednesday. The FTSE 100 is up 42 at 5,079.

1121: A heady mix of miners and retailers are keeping the FTSE 100 deep in the blue, up 40 at 5,077, as US futures indicate an early 60-point rally on Wall Street. Next is still up 6%, with M&S close behind.

1027: London is 34 points higher at 5,072, led by Next and M&S following well-received updates. Gains at miners Fresnillo, Kazakhmys and Randgold are offsetting losses among the oil companies and drug majors.

0930: UK services PMI rose to 56.9 in October from 55.3 the month before. That's better than the rise to 55.5 predicted by economists. FTSE 100 is up 36 to 5,074.

0840: Retailers are having a good day after Marks & Spencer beat forecasts and rival Next upped its sales forecast for the current year. Life group Aviva is also going well after its reported profits are on track with higher margins offsetting sharply lower sales. Miners are also having a decent day so far led by Fresnillo. FTSE 100 up 27 at 5,065.