Higher oil prices and renewed optimisim about the global economic outlook lifted Wall Street stocks today.

The Dow Jones Industrial Average rose 33.7 points or 0.4 per cent to 8,472.09 while the S&P 500 climbed 0.2 per cent to 920.95.

Risers included energy stocks Exxon Mobile and Chevron which benefited from the rise in crude to above $70 a barrel.

Peter Jankovskis, at OakBrook Investments, said: "We are watching a bounce after the declines of the last two weeks. It's a..busy week in terms of economic data. There is optimism ahead of those numbers."

Economists are hopeful that employment data, out this week, will show unemployment in the US is rising at a slower pace. A separate survey of purchasing managers is expected to show the sector shrank at the slowest pace in 10 months.

In London the FTSE was up 18.10 points or 0.4 per cent at 4,259.11. The biggest riser was Lloyds up 4.87p or 7.32 per cent at 71.36p after Goldman Sachs upgraded its rating on the bank to "buy" from "neutral." It noted Lloyds was the "least expensive large cap in Europe."

Insurers also featured heavily on the leaders board. Admiral, rose 32p or 3.74 per cent to 888p. The group was boosted by an upgrade from Credit Suisse, which said it was "ideally positioned to take advantage of improving pricing conditions in the UK personal motor market."

In the life insurance sector Prudential gained 21p or 5.26 per cent to 420.25p.

The main faller was 3i group, the private equity house, which shed 6.25p ot 2.58 per cent to 236.25p.

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