Shot in the arm for UK tech stocks

The FTSE100 rallied this morning on news of healthy gains in the US stock market boosting shares for ARM, Sage and Vodafone.

The UK technology sector received a much-needed shot in the arm as Intel's shares rose $1.36 to $21.58 and Microsoft rose $2.97 to $55.54 after the software giant predicted beating its fourth-quarter forecast.

The news caused a flush of excitement in the London market this morning.

Software firm Sage was three per cent higher while Vodafone rose 1.54 per cent to 98.75p, the first indication that the slump of the last few days could be over. Rival mmO2 showed similar signs of health as it was up 1.29 per cent to 39.25p. However, parent company BT failed to share in the joy even with the news of accelerated growth plans for BT Retail. Its shares traded more than one per cent lower.

ARM Holdings enjoyed a brief rally to 173.5p after recent speculation that it was to lose its place in the FTSE100. Invensys also benefited from the US good news, trading up 2.22 per cent to 103.5p at 09:35(GMT).

But the picture wasn't so rosy for Cable and Wireless. News of lost contracts and director pay offs took its toll causing share prices to drop over one per cent to 192.5p.