Market overview: FTSE ends higher as oil prices gain

1630 (Close): The FTSE 100 ended up 51.49 points to 6550.27 as oil prices rose to push energy stocks higher. Also boosting sentiment in afternoon trade was the University of Michigan US consumer-confidence index which surged to an 11-year high of 98.2 in January, from 93.6 the month before and ahead of the 94.1 forecast. Meanwhile, Eurozone consumer prices were unrevised at a 0.2% drop in December, adding to speculation of full-blown quantitative easing by the European Central Bank ahead of its meeting next week. US consumer prices declined by 0.4% in December as expected due to the drop in fuel price and pushed the annual rate of inflation down to 0.8% from 1.3% the month before.

1549: UK stocks are holding on to gains with the FTSE 100 now up 38 points at 6,536. The University of Michigan consumer-confidence index surged to an 11-year high of 98.2 in January, up from 93.6 the previous month and well ahead of the 94.1 forecast.

1510: Alpari UK has entered into insolvency following the SNB's decision to end a cap on the franc against the euro. Company analyst Craig Erlam called the action "idiotic", adding: "The move by the SNB generated a lot of questions regarding what motivated such an irresponsible and abrupt move given that only a few days before the central bank had referred to the 1.20 floor as the "cornerstone" of its monetary policy. SNB Chairman tried to convince us all that the decision was well thought out but I'm sure many would agree that unless under exceptional circumstances, a well thought out decision of this magnitude should take longer than 48 hours.

1330: US inflation rose more than expected in December. The consumer price index grew 0.8% year-on-year last month after rising 1.3% in November. Analysts had predicted a 0.7% gain.

1104: Imperial Tobacco is performing well (+1.3%) after Morgan Stanley hiked its target price from 2,680p to 3,250p and named the stock its new top pick, saying it is “increasingly optimistic” about its pending $7bn acquisition of assets from Reynolds and Lorillard. Heading the other way is ARM (-2.8%) after chip rival Intel said last night it had sold more-than-expected chips for tablets in 2014. Liberum kept a ‘sell’ rating on ARM, saying that competition from Intel is now rising in the smartphone sector, “which could take share from ARM in its core market”.

0945: Christine Lagarde, the head of the International Monetary Fund (IMF), has praised the recovery of the British economy, claiming Britain’s recovery was providing “eloquent and convincing” leadership for the rest of the European Union. "More growth, less unemployment, a growth that is more inclusive, that is better shared, and a growth that is also sustainable and more balanced,” Lagarde said in Washington.

0845: Markets began the final day of the week on a downward note, in the wake of losses on Wall Street on Thursday. BP was the biggest riser, following news that the fine for its role in the Gulf of Mexico spill will be approximately $4bn lower than originally expected. Meanwhile, HSBC is investigating reports according to which customers in Hong Kong bought the Swiss franc below market rates when an online banking system failed to keep up with the currency’s sharp gains after the removal of a cap on Thursday. The FTSE 100 was three points down on the day at 6,495.84.