Retail bellwethers Next and Marks & Spencer led strong gains on London's blue chip share index today as economic and corporate news buoyed stocks.

Reassuring updates on trading from the two high street giants added to data showing growth in the all-important services sectors in the UK and the US.

The FTSE 100 Index closed up 70.7 points at 5107.9, having surged around 80 points higher at one stage, as Wall Street also responded well to the economic data.

America's Institute for Supply Management said service industry activity grew for a second straight month in October, while in the UK the latest services survey revealed the strongest reading since September 2007.

The Dow Jones Industrial Average on Wall Street lifted more than 1.2% in early trade, with encouraging US employment figures showing the seventh straight month of declining job losses also boosting investors.

In London, M&S climbed more than 6% after reporting profits of £298.3m (€333m) for the six months to September 26 and a decent start to the third quarter. The group's figures, which were above market expectations, helped shares cheer 20.5p to 361.5p.

Next also powered close to the top of the Footsie risers board after it said the consumer climate had been "more benign than we anticipated".

Its shares rose 6% - or 102p higher at 1912p - after lifting its sales forecasts for the rest of the year.

Elsewhere in the sector, Argos and Homebase firm Home Retail Group added more than 5%, or 15.3p to 299.2p while B&Q owner Kingfisher was 7.6p dearer at 231.7p.

Meanwhile the part-nationalised banks had a reversal of fortune after yesterday's shake up.

Royal Bank of Scotland clawed back some of Tuesday's 7% fall following the announcement of break-up plans and a £25.5bn (€28.5bn) capital injection from the state. Shares were up 0.54p to 36.47p.

But Lloyds Banking Group was a chief faller having topped the winners yesterday in the wake of its rights issue announcement and avoidance of the British government's toxic asset scheme. Shares were down 1.04p at 86.29p.

Among the other blue-chip stocks in negative territory were index heavyweights GlaxoSmithKline and Royal Dutch Shell, down 7p to 1221.5p and 18p to 1743p respectively. The duo turned ex-dividend, meaning investors are no longer entitled to the latest payout.

Housebuilders dominated the risers board in the FTSE 250 Index after Taylor Wimpey said market conditions were "significantly better" from July 1 to date than last year, with cancellation rates at 16%, against 46% in 2008. It is also looking to push through higher selling prices.

The company's shares rose 8% or 3.03p to 40p, while Persimmon added 40.7p to 424p and Barratt Developments lifted 15.4p to 136.3p - a hike of 13%.

The biggest Footsie risers were Fresnillo ahead 69p at 820p, Thomas Cook up 14.3p at 207.4p, Kazakhmys up 77p at 1197p and British Airways up 11.9p at 191.8p.

The biggest Footsie fallers were Cadbury down 11p at 766p, Lloyds Banking Group off 1.04p at 86.29p, Royal Dutch Shell down 18p at 1743p and Bunzl down 6p at 644.5p.

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11/03/2010: FTSE on the slide
05/03/2010: FTSE hits 18-month high
26/02/2010: FTSE up almost 1.5%
26/02/2010: FTSE on the rise
19/02/2010: Late rally for FTSE
16/02/2010: FTSE up more than 75 points
12/02/2010: Modest gain for FTSE
10/02/2010: Small gain for FTSE