Positive figures released by Barclays has kept the bank in the FTSE winners table, helping the index climb 38.8 points, or 0.65%, to 5,928.1 in early trading.
In London, markets climbed as banking shares recovered in the afternoon, and the FTSE 100 closed up 20.30 (0.34%) to 5,966.9.
In London, markets fell in early trading after shares made substantial gains on Monday and the FTSE 100 fell 60.8 points (1.02%) to 5885.8.
The FTSE rose 154 points, or 2.66%, to 5941.6p this afternoon as reports of increased dividends to Barclays and Lloyds TSB shareholders continued to lift the market.
The FTSE rose 98.7 points, or 1.71%, to 5886.3p following reports Barclays and Lloyds TSB will increase their dividend payouts this week.
London markets closed the week in sharp decline as early losses were cemented by a weak Wall Street opening, the index finished 91.70 points lower (1.56%) to 5787.60.
A positive start for the FTSE 100 is being eroded by the minute this morning; the index is currently just hanging on, 3.20 points (0.05%) ahead to 5882.50.
In London, markets settled at a similar level to opening after early gains were wiped out over concerns of sub-prime exposure, and the FTSE 100 fell 5.4 points (0.09%) to 5,874.7.
British Energy Group tops the FTSE winners table in early trading, helping to push the index up 21.9p, or 0.37%, to 5,902.
A solid start on Wall Street was not enough for the FTSE 100 to push into positive territory this afternoon, closing 0.51% lower to 5,880.10.