Firm futures continued to push leading shares higher as a bearish Confederation of British Industry survey heightened rate cut hopes.

The FTSE 100 was up 77.9 points 5309.4.

The benchmark December index future was trading up 72 at 5352.

"We're following the same pattern we saw yesterday," said one trader. "We're being driven by strong futures which have been trading at a premium for most of the morning."

The Bank of England holds its monthly monetary policy committee meeting next week, and while traders say a quarter point easing is already priced into the market some market commentators have called for a half point cut.

The CBI's very grim industrial trends survey for October added weight to calls for a bigger cut.

The report showed the biggest fall in manufacturing confidence since July 1980, suggesting a sharp economic downturn and raising the risk of an outright recession.

Spirits and pub retailing company Allied Domecq had the biggest advance among the blue chips, climbing 29p or 6.2% to 500p.

The company reported a 1% rise in full year pretax profits to £615m against forecasts of £612m.

Pharmaceuticals and chemicals concern Zeneca slipped 126p to 2211p despite reporting a 5% rise in nine-month sales to £4.15bn.

Norwich Union fell 9.75p to 427.25p after announcing the £315m acquisition of London & Edinburgh Insurance from US owner Hartford International.