MORE than £27bn was added to value of blue-chip shares yesterday as markets soared on booming US consumer confidence and hopes of further economic stimulus from central banks.

The FTSE 100 Index surged 1.6 per cent or 107.7 points to 6762, resuming its upward trajectory after last week’s setback, which was triggered by hints the US Federal Reserve could scale back its vast moneyprinting drive.

In New York, the Dow Jones Industrial Average raced ahead by 1.2 per cent in early trading after figures revealed consumer confidence last month hit its highest level since February 2008. It was also boosted by encouraging data on the US housing market.

Talk of more action by the European Central Bank (ECB) and the Bank of Japan also sent investors flocking back to equities.

The Dax in Frankfurt and the Cac 40 in Paris were sharply higher as they tracked overnight gains on China’s Hang Seng and the Nikkei in Japan.

Markets were buoyed by ECB members’ comments that it could still cut interest rates and will maintain an “expansive” approach for as long as necessary.

Global stock markets have been lifted by record low interest rates and unprecedented money-printing by central banks, pushing investors into equities amid plunging returns on government debt and cash deposits. All but seven stocks advanced on the FTSE.

Holiday firm TUI Travel was among the leaders in London, buoyed by acquisition activity in the sector after French rival Club Med yesterday said it had received a 541 milion euro (£463m) takeover bid by two of its biggest international shareholders, Chinese conglomerate Fosun and Axa Private Equity.

TUI rose nearly three per cent or 10.7p to 369.2p after news of the approach.