The FTSE 100 made a rapid 1.5% gain in early trading on Friday as miners and banks made steady progress.
The Royal Bank of Scotland Group was the biggest mover after its share price climbed by more than 6%. The rise followed news Bank of America, the US's largest bank, will receive $20bn of government aid and $118bn of guarantees against bad assets in return for a stake in the company. The emergency funding, which comes on top of a recent $25bn capital injection from the Troubled Assets Relief Programme, will help the bank absorb the losses it incurred when it bought Merrill Lynch. Fears the company's worsening capital base could filter through to the wider economy sparked the government...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes