THE London market was led higher by retailers after encouraging results from Next and John Lewis.

Next was the biggest riser, climbing six per cent, as investors applauded an 8.5 per cent increase in half-year pre-tax profits to £228m. This provided a lift to the retail sector and helped the FTSE 100 Index rise one per cent, or 52.8 points to 5227.

Retailers have been hammered amid the squeeze in consumer spending in recent months, but employee -owned John Lewis Partnership helped the mood after it said like-for-like sales for the past six weeks were up 1.9 per cent at its department stores and by 3.9 per cent at supermarket chain Waitrose.

Profits were down 18 per cent overall but, like Next, the group said it was making progress in the face of tough conditions.

Next rose 148p to 2483p, while Marks and Spencer added 7.9p to 326.5p and B&Q owner Kingfisher rose 5.7p to 239.6p ahead of results tomorrow.

Fashion brand Burberry was up 73p to 1367p.

Banks were also among the risers.

Royal Bank of Scotland rose 0.9p to 22.8p, Lloyds increased 1.7p to 33.5p and Barclays was ahead 3.7p at 152p.

Shares in BP were also nearly four per cent higher, up 13.5p to 395.1p, after a key report into last year’s Gulf of Mexico rig explosion and oil spill appeared to spread some of the blame for the disaster.

Shares in construction firm Galliford Try were ahead five per cent, or 21.5p at 426.5p, after it reported stronger-than-expected profits.

Galliford benefited from a resilient new homes market in the south of England, while more work at the All England Club, where it has recently rebuilt Number 3 court, ensured half-year profits rose 24 per cent to £43.6m.

Housebuilder Barratt Developments posted is first underlying profit for three years, which helped shares rise 0.9p to 77p.