After a tumultuous few days for UK banks, Royal Bank of Scotland (RBS) Group rallied early on Tuesday with its share price climbing more than 15%.
This came after the state-controlled lender suffered a 67% plunge in its share price when it revealed the largest loss in UK corporate history.
The UK government has now lifted its shareholding in RBS to 70%. Overall, the FTSE 100 was up by 0.35% by 8.45am.
It has also been a better morning for Barclays and Standard Chartered. The share price of Barclays rose by 5.57% while Standard Chartered was approaching a 4% advance.
The positive news from the stock market follows a range of government measures, which include a scheme to insure banks against unexpected tens of billions of pounds of losses on potentially toxic assets.
Elsewhere on the FTSE, the share price of mining group Vedanta Resources rose by 11.56%.
In the US, as preparations for today's presidential inauguration of Barack Obama gathered pace, the Dow Jones finished 0.84% up.
The largest gainer was Boeing (3.66%) while the wooden spoon went to Bank of America (-13.7%).IFAonline
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