London close: Stocks stage late rally after positive US labour data

After a negative start, UK stocks rallied into the close as improving labour-market data from the States lifted sentiment.After a choppy week, owing mainly to volatility on the government bond market, Wall Street indices opened higher following a Labor Department report which showed that US jobless claims unexpectedly declined last week.The FTSE 100 finished the session up 23.41 points (+0.34%) at 6,973.04, well above the intraday low of 6,884.63 reached early on.The Dow Jones Industrial Average was up 0.9% at 18,218 by the close in London, nearing a new record high after data showed that initial claims for unemployment benefits inched 1,000 lower to 264,000 in the week ended 9 May. Analysts had expected a rise to 273,000.Meanwhile, the four-week moving average, which smoothes out week-to-week volatility, dropped 7,750 to a new 15-year low of 271,750.The mood on the market was also supported by comments from Federal Reserve vice chair Donald Kohn who said that a June interest rate hike is off the table. He said that the Fed would likely tighten policy in either September or December.UK equity markets had started on the back foot after reports that Greek finance minister Yanis Varoufakis has called for the European Central Bank to delay Athens' debt repayments, though downside was limited with trading volumes lower across Europe."As both France and Germany have enjoyed bank holidays, European equities have understandably had a particularly lethargic feel to them today," said IG analyst Alastair McCaig.Earnings mostly well-receivedInvestment group 3i impressed with its annual results with a strong total return of 20% for the year.Property giant British Land gained after meeting forecasts with a small increase in profits in the year ended 31 March. Diluted underlying earnings per share increased 4.1% to 30.6p, more or less in line with consensus estimates.ITV declined as, despite net advertising revenue for the first quarter being ahead of guidance, sentiment was dampened by reports of a lower second quarter. Furthermore, staff are holding a 24-hour strike over pay with a protest at the broadcaster's annual shareholder meeting.Alton Towers and Madame Tussauds owner Merlin Entertainments edged higher after a "satisfactory" start to 2015, boosted by favourable weather in Europe and helpful currency movements.Pharmaceutical outfit Hikma advanced as it reiterated its guidance for full-year revenue growth of "around 6% in constant currency".A number of blue-chip stocks were trading lower after going ex-dividend, including Aberdeen, Shell, Glaxosmithkline, Kingfisher and J Sainsbury.Market MoverstechMARK 3,241.08 +0.15%FTSE 100 6,973.04 +0.34%FTSE 250 17,929.33 +0.38%FTSE 100 - Risers3i Group (III) 527.50p +3.03%Mondi (MNDI) 1,453.00p +2.76%Shire Plc (SHP) 5,295.00p +2.42%Hikma Pharmaceuticals (HIK) 2,079.00p +2.41%easyJet (EZJ) 1,690.00p +2.24%Diageo (DGE) 1,786.50p +1.82%St James's Place (STJ) 941.50p +1.78%Smiths Group (SMIN) 1,148.00p +1.77%Reckitt Benckiser Group (RB.) 5,767.00p +1.76%Pearson (PSON) 1,323.00p +1.61%FTSE 100 - FallersKingfisher (KGF) 352.60p -2.33%Sainsbury (J) (SBRY) 269.20p -2.29%Anglo American (AAL) 1,110.50p -1.86%Aberdeen Asset Management (ADN) 437.50p -1.38%GlaxoSmithKline (GSK) 1,430.50p -1.38%Royal Dutch Shell 'A' (RDSA) 2,018.50p -1.32%BHP Billiton (BLT) 1,549.00p -1.31%Royal Dutch Shell 'B' (RDSB) 2,055.00p -1.27%Capita (CPI) 1,257.00p -1.18%ITV (ITV) 257.30p -1.04%FTSE 250 - RisersZoopla Property Group (WI) (ZPLA) 228.90p +5.97%TalkTalk Telecom Group (TALK) 384.10p +5.75%Dechra Pharmaceuticals (DPH) 1,060.00p +4.23%RPS Group (RPS) 224.00p +3.66%Saga (SAGA) 207.90p +3.43%Jardine Lloyd Thompson Group (JLT) 1,054.00p +3.23%Crest Nicholson Holdings (CRST) 494.40p +3.02%Bwin.party Digital Entertainment (BPTY) 89.40p +3.00%Workspace Group (WKP) 875.00p +2.76%Man Group (EMG) 174.00p +2.65%FTSE 250 - FallersRestaurant Group (RTN) 688.00p -4.38%Keller Group (KLR) 987.00p -4.08%Euromoney Institutional Investor (ERM) 1,209.00p -3.28%Telecity Group (TCY) 1,080.00p -3.14%AL Noor Hospitals Group (ANH) 824.00p -3.06%Vesuvius (VSVS) 442.30p -2.96%SIG (SHI) 205.30p -2.79%Premier Oil (PMO) 183.00p -2.40%Carillion (CLLN) 330.80p -2.39%Inmarsat (ISAT) 993.50p -2.02%