In London on Wednesday the FTSE 250 went above 10,000 for the first time although it ended just below that level at 9,997.6, a gain of 0.3 percent on the day. The FTSE 100 also added 0.3 percent on the day to close at 6,104.3. The 100 benefited from gains in the financial sectors, while homebuilders helped the 250 into record territory.

There were declines on the day, however. British Energy dropped 4.6 percent to 682p after the price of European carbon dioxide emission credits dropped. And EMI was down 0.95 percent after recent gains when Merrill Lynch said that the benefits of a possible merger with US company Warner Music has now been incorporated into its share price. EMI closed at 285¾p.

Among financial companies, fund management group Amvescap gained 8.7 percent to 624p on a much better than anticipated first-quarter earnings report. Among banks, Lloyds TSB added 1.5 percent to 532p on a comment from Deutsche Bank that its dividend could increase next year, along with a reiteration of its “buy” recommendation and its 610p target share price.

Homebuilders were up on more rumors of mergers. Crest Nicholson was up 3.4 percent to 532½p on speculation that Bovis Homes Group is interested in buying the 23.3 percent the company currently owend by Heron International. Bovis added 0.3 percent to 908p on the talk.

Carphone Warehouse gained 5 percent to 338¾p after it’s house broker upgraded it to “outperform” and raised its target share price to 420p, a rise of 68 percent. It figures that the company’s recently launched bundled internet/phone service could increase profits by a significant amount in the next few years.

Despite gains early in the day in London on Tuesday, the FTSE 100 ended the day down by 0.8 percent to 6,016.5, mainly on declines spurred by worries about rising interest rates around the world. The FTSE 250 lost even more, dropping 1.3 percent to 9,743.8. Volume amounted to 3.4 billion shares traded.

The early gains came on advances in the mining sector as metals prices hit new highs yet again. Anglo American added 0.8 percent to £24.25 and Xstrata gained 1.6 percent to £20.05. Both were helped by upgrades from “hold” to “buy” from Deutsche Bank.

The oil sector was also largely higher as crude oil prices rose. Dana Petroleum was up 3.2 percent to £10.70 after Merrill Lynch upped its target share price from £11.50 to £13.50. Not all sector stocks were up, however. Burren Energy dropped 4.8 percent to 907p when Merrill Lynch downgraded its shres from “buy” to “neutral” over problems in its exploration program.

The telecommunications sector was also mixed. Colt Telecom added 4.4 percent to 70½p on renewed bid speculation. But BT Group and Carphone Warehouse both lost ground after Carphone Warehouse announced a plan to offer free broadband to UK customers. BT dropped 2.4 percent to 213p, while Carphone Warehouse was down 1.1 percent to 310p. Vodafone also declined, dropping 2.2 percent to 123½p.

In the retail sector, Marks & Spencer added 3.9 percent to 586p on the announcement that sales were up more than had been expected and on a subsequent reiteration of a “buy” recommendation from Oriel Securities.

Insurer Prudential dropped 2 percent to 654p after Axa said that it was not discussing a bid and was not planning to enter into such talks.

Meanwhile, US stock exchange Nasdaq became the largest shareholder in the London Stock Exchange when it bought out Threadneedle Asset Management’s 35.4 million shares in the LSE and also made a separate purchase of 2.7 million additional shares in the exchange. The purchases took Nasdaq’s stake in the LSE to 14.99 percent, higher than the 10 percent rumor had it that the US company was looking to acquire. The news of the acquisition only was revealed after trading had closed for the day. During the day’s session, shares in the LSE had gained 1 percent to £10.38.