London close: Stocks end near record highs

London's FTSE 100 finished higher albeit off its best levels of the day, bolstered by upbeat services data from China and the UK and on hopes for a potential ceasefire between Ukraine and Russia.

London's FTSE 100 finished higher albeit off its best levels of the day, bolstered by upbeat services data from China and the UK and on hopes for a potential ceasefire between Ukraine and Russia.

The blue-chip index rose for the fourth straight session, at one point reaching an intraday high of 6,898.62, a level not seen since early January 2000.

The top flight index ended the day up 0.65% at 6,873.58.

Driving gains was news of Ukrainian President Petro Poroshenko and Russian President Vladimir Putin working towards a ceasefire to stop fighting in eastern Ukraine.

"Reports of a ceasefire in eastern Ukraine has been welcomed with open arms by the markets, following months of growing tensions between Russia and the West that has resulted in painful economic sanctions being applied by both sides," said analyst Craig Erlam from Alpari UK.

Meanwhile, purchasing managers' indices (PMIs) from the Chinese and UK services sectors both showed that activity growth had picked up in August. In particular, the UK services PMI jumped to a 10-month high.

On a less positive note, the final estimate of the Eurozone services PMI was revised lower, indicating a slowdown last month. However, it is likely to have fuelled hopes for potential stimulus measures by the European Central Bank (ECB). The ECB's next meeting is on Thursday.

Ashtead, Vodafone on the rise

Shares in Ashtead jumped after the group said it expects to beat full-year expectations as profits jumped by a third to a record high in its first quarter, helped by strong revenue growth and improving margins. Chief executive Geoff Drabble said that the company "continue[s] to capitalise on recovering markets" and that its US and UK divisions took further market share.

Telecoms titan Vodafone made gains after Japan's Nikkei newspaper suggested that Japanese group Softbank is mulling a takeover of the UK firm.

Heading the other way was Hargreaves Lansdown after its final results showed assets under administration (AuA) were less than consensus expectations. The financial services group lifted AuA up 29% at £46.9bn, versus forecasts of at least £48m.

A number of other blue chips were also lower on Wednesday after going ex-dividend, including BHP Billiton and TUI Travel. Glencore also went ex-dividend, but early gains were quickly erased after Investec lifted its rating on the stock from 'hold' to 'add'.

On the FTSE 250, Booker's share price dropped sharply after German retailer Metro sold its entire 9% holding in the UK cash-and-carry chain.