FTSE 100 closes higher on U.S. economic outlook

FTSE 100 Index, British benchmark stock market gauge, Thursday increased by 0.57 percent, or 37.87 points, to 6,668.87, as the U.S. Federal Reserve toned more positively on U.S. economic outlook.

The Fed Wednesday said the U.S. economy and job market continued to improve since June, a sign that the central bank remains on track to raise interest rate later this year. But it didn't provide a clear signal for the rate hike timetable.

On Thursday, the Commerce Department of the U.S. government said the country's economy expanded at an annual rate of 2.3 percent in the second quarter, a moderate bounce from the revised 0.6 percent increase in the first quarter.

Royal Dutch Shell 'B' share price increased by 4.73 percent topped the gainers of the blue chips, as the group announced a job cut of 6,500.

Prices of InterContinental Hotels Group, Royal Dutch Shell 'A', BG Group and AstraZeneca advanced by 4.57 percent, 4.22 percent, 3.80 percent and 3.07 percent respectively.

Babcock International Group led the top losers of the blue chips with a share price drop of 5.15 percent, followed by Centrica (3.12 percent), Royal Bank of Scotland Group (3.06 percent), easyJet (2.32 percent) and Shire Plc (1.93 percent).

Trading volume in FTSE 100 companies was around 15 percent larger than the 30-day average. And the index has gained 3.89 percent so far this year. Endit