THE FTSE 100 Index finished in the red yesterday, but that did not prevent it enjoying its best September for 13 years.

The FTSE, which has added 6.7 per cent over the month, dipped in and out of the red throughout the day and finally closed 20 points down at 5548.

Stock market historian David Schwartz said it was the best September since 1997, when the FTSE climbed seven per cent during the month.

The trading day started with concerning European news, as rating agency Moody downgrading Spain to Aa1, while the Irish government said the total cost of bailing out Anglo Irish Bank was 34 billion euros (£29bn).

But improved US data lifted the mood later in the day, with the final second quarter GDP revision coming in slightly better than expected at 1.7 per cent, while weekly jobless claims fell to 453,000 from 465,000 the previous week.

Wall Street opened higher on the final day of what is expected to be the best September in 71 years for US markets.

In the face of strong US data, the pound was down against the dollar at 1.57, while it was lower against the euro as well, at 1.15.

Fears over the European debt crisis hit the banking sector, with Barclays down 5.6p to 299.6p and HSBC down 4p at 645p.

With the dollar under pressure amid concerns that the US Federal Reserve will reopen its quantitative easing programme, the price of gold set a new high above 1,300 US dollars an ounce as investors continued to see the precious metal as a safe haven.

Mining stocks were cheered as Lonmin added 2p to 1669p and Eurasian Natural Resources lifted 14.5p to 918.5p.

The oil and gas sector helped push the market up earlier in the day with BP leading the charge and Royal Dutch Shell not far behind.