FTSE 100 continues to gain as predictions revised up

In London on Tuesday, the FTSE 100 gained 0.5 percent to 5,217.2, while the FTSE 250 was up 0.4 percent to 7,537.2 on a volume of 2.7 billion shares traded.

Deutsche bank raised its target for the FTSE 100 from 5,250 to 5,450 by year’s end.

BP, the largest company on the FTSE 100, lost 2.3 percent to 619 ½p on news that its Thunder Horse drilling rig in the Gulf of Mexico was left listing after an encounter with Hurricane Dennis. The extent of damage to the rig, worth $6.5 billion, was unknown.

Telecommunications companies found themselves in positive territory. Virgin Mobile gained 2.1 percent to 260p on a “buy” recommendation and target price of 300p from ABN Amro. O2 gained 1.7 percent to 138p, while Vodafone was up 1.1 percent to 142½p.

The biggest loser among blue-chip stocks was Man Group, which was off by 3.4 percent to £15. 17. The hedge fund manager was down on a smaller than expected rise in funds under its management as well as the announcement that bad currency movements had cost the company $600 million since March.