Proposed changes to the way solvency margins are maintained by UK insurers battered by falling stock...
Proposed changes to the way solvency margins are maintained by UK insurers battered by falling stock markets has resulted in a 102 points gain by the FTSE 100 to 3,668 this morning.
Announced after the market closed on Friday, the changes pushed US traded shares in companies such as Aviva up in New York, heralding big gains on this side of the Atlantic.
Royal & Sun Alliance is up 8.5p to 105p, Aviva is up 34.25p to 427p, and Prudential is up 30.25p to 411p.
Friends Provident is up 5.25p to 93.5p.
Banks are also doing well, with LloydsTSB up 26p to 405p, HBOS up 33p to 584p, and Barclays up 16.25p to 366.5p.
Only four stocks are making losses, led by Scottish & Newcastle.
The brewer is down 19p to 392p after it said costs would eat into profits this year.
Hilton Group is down marginally 0.5p to 154.5p and airport operator BAA is down 1p to 448p – despite announcing a 35% rise in third quarter profit - as investors continue to query hotel and airport earnings in the lead up to possible war with Iraq.
The FTSE 250 is up by 43 points to 4,058, led by Britannic Group.
Like its bigger peers, the insurer has gained from the FSA's announcement, putting on 10p or 8.5% to 127.5p.
Egg, the internet bank majority owned by Prudential, has gained 8p to 107p.
Trinity Mirror is up 24.5p to 394p following weekend reports that it has received a £1.3bn bid from venture capital firms Apex and Candor – the company says it has received no formal bid.
A £230m contract ought to cheer most companies up, but not investors in Amec, the troubled Private Public Partnership engineering services provider, which saw its shares fall 3.25p to 166.75p on news of a deal with Shell.
Autonomy, the software developer, is down 7p to 125p.
Bigger stocks rebounded strongly in New York on Friday, pushing the Dow Jones Industrial Average index up 108.68 points to 8,053.81.
The S&P 500 gained 11.09 points to 855.70, although Nasdaq's Composite tech-heavy index fell 1.44 points to 1,320.91.
Tokyo's Nikkei 225 index climbed 160.85 points to 8,500.79 after the government hinted it might sell more yen to lower its value in a bid to boost exports.
Hong Kong's Hang Seng climbed 18.16 points to 9,258.95.
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
Senior Managers Regime
Interest rate outlook unchaged
FCA made demands last week