Market report: Thursday close

AMERICAN investors were acting as party poopers today as they chose to ignore some better than expected US economic growth numbers.

In fact, the third-quarter GDP figures showed the US economy surging 7.2%, way above the 6.1% most economists had pencilled in. It was the biggest quarterly gain since 1984.

But investors on Wall Street remained unimpressed and early gains for the Dow were soon reversed. They chose to concentrate on third-quarter numbers from Exxon Mobil, the world's biggest oil company, which came in well below expectations. It served to emphasise that the US economy is not yet out of the woods.

By contrast, the London market milked the US economic numbers with share prices advancing after a slow start to climb above the 4300 level. The FTSE 100 Index closed 35.20 points higher at 4300.90.

A two-way pull has developed in BOC , up 5p to 826 1/2p, after this week's court ruling in Illinois to award damages to a welder who says he developed Parkinson's Disease from breathing gas fumes.

It is feared the award of about $1m (£589,000), made against three companies including BOC, could open the floodgates to more claims from Americfa's 700,000 welders. There are reckoned to be about 6000 cases outstanding. Some brokers estimate damages against the industrial gases industry could reach £41bn. BOC says it will appeal.

Broker Merrill Lynch has cut its recommendation on BOC from buy to neutral, worried by the litigation risks. The broker says: 'We believe it is impossible to estimate accurately the financial impact on BOC, given it will appeal. New cases are likely to emerge if it loses, other cases might be settled for less if plaintiffs appear healthier and BOC's insurance position is unclear.'

Deutsche Bank reckons BOC's appeal will be successful and was telling clients the shares have been oversold.

Bid target Jarvis Hotels firmed 1 1/2p to 145p after yesterday's approach at that price from several of its directors. It seems City speculators are turning their attention to Millennium & Copthorne, 1/2p better at 342 1/2p, as the next bid target. Brokers say it carries a price tag of nearer £1bn.

Profit-takers moved in on constructor Alfred McAlpine, down 4p to 292p despite revival of bid talk. Word is Gerald Ronson's Heron International wants to make an offer. McAlpine received a bid approach, three years ago, also thought to have been from Heron. It then attracted the interest of rival Bryant that led to it selling its housebuilding division to George Wimpey, off 13p to 325p, for £463m.

The prospect of higher interest rates and worries about personal debt levels hit other housebuilders. Westbury fell 19p to 368 1/2p, and Bovis Homes, 21p to 418p.

Reuters hardened 5 1/2p to 255p on learning chief executive Tom Glocer has reduced his two-year rolling contract to one year after investor criticism. Anthony de Larrinaga, at broker SG Securities, continues to rate the news agency and financial information provider a buy, despite fading bid hopes, with a 366p target. But he points out it is unclear how much Glocer was recompensed for the contract move, if at all.

BHP Billiton continued to cheer the mining sector after its solid operating figures yesterday and an optimistic outlook. It added 21 1/4p to 470 1/4p. Rival Rio Tinto was up 42p at 1439p and Anglo American rose 42p to 1205p.

Abbey National rallied 4p to 556 3/4p after yesterday's disappointing figures and the prospect of declining bid hopes. Goldman Sachs says the picture is likely to remain unclear for at least another year and continues to rate it underperform. Broker WestLB Panmure believes Marks & Spencer has gone ex-growth and is forecasting a drop in first-half profits from £306m to £300m. The shares fell 6p to
287 1/2p.