UK shares rise as Draghi straps on Pickelhaube

But as the FTSE 100 played catch up, the DAX and CAC gave up some of yesterday's gains, dipping 0.3 and 0.1pc respectively.

"The FTSE is supported this morning by Draghi's Jackson Hole speech - although low on detail. European central bank support will be a positive for the UK market as well," said Lex van Dam, a hedge fund manager at Hampstead Capital.

Mr Draghi has long been urged to consider QE but has yet to act. As far back as January Telegraph columnist Ambrose Evans-Pritchard said in a blog entitled Mario Draghi: strap on your Pickelhaube and buy fistfuls of German Bunds:

It tempting to say buy "especially" Bunds. That would at least force Bild Zeitung to stop shrieking that purchases of Club Med bonds are state bail-outs. But I doubt that carpet Bund drops over Germany would be legal.

What is entirely legal – and entirely within the ECB's mandate – is to buy the bonds of all eighteen states in concert on a GDP basis or linked to the ECB key to restore Mario Draghi's "safety margin" against deflation.

Just do it Mario: strap on your Pickelhaube tightly, and stuff them with a round trillion.

Blue chip stocks in London were also buoyed by first-half results from WPP, the world's largest advertising group, which reported a 15pc rise in pre-tax profits despite a strong pound. The shares rose 2.2pc on the better-than-expected results.

Another gainer was Bunzl. Shares in the business supplies distributor and outsourcer rose 2.45pc after reporting revenues in the six months to June 30 that were 1pc lower at £2.94bn and pre-tax profits 2pc higher at £132m. However, the company, which generates less than fifth of its revenues in the UK, said at constant exchange rates, revenue was up 7pc and profit 11pc higher.

Insurer RSA rose the most - 2.95pc - after BofA Merrill Lynch upgrade to "buy" from "neutral".

Miners Rio Tinto, Fresnillo and Antofagasta were the biggest fallers, down between 0.4pc and 1pc, in signs of a weaker outlook for iron ore, copper and other metals.

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