Falling crude oil prices and a strong financials sector has led to a fast start for the FTSE100 this morning, currently 1.28% ahead to 5432.70.
Investors rejoiced as crude oil fell to $127.70 a barrel overnight, which is 12% lower than its 3 July peak.
Vodafone’s decision to buy-back £1bn of shares after its solid losses yesterday has also helped to kick-start the session.
Large gains for financial institutions across the Atlantic has boosted UK banks, with HBOS climbing 10.15% to 287.50 and Royal Bank of Scotland 6.53% higher to 212.
British Land is 5.46% ahead to 743.50 so far, while insurer Friends Provident also has reason to cheer, climbing 5.24% to 84.30.
Miners are among the early decliners, with Anglo American down 2.94% to 2743 and Ferrexpo 2.63% lower to 268.25.
In New York, Wall Street enjoyed solid gains on Tuesday led by the oil decline and financial rally. The Dow Jones IA climbed 135.16 points (1.18%) to 11602.50.
Bank of America continued its recent fine form, leading the way up 13.27% to 32.35.
The falling oil prices are driving the General Motors revival, 9.4% higher to 14.32.
Citigroup and AIG were also among the top performers, up 6.09% to 20.89 and 6.07% to 28.14 respectively.
Pharmaceutical giant Merck continued its significant slide, down 11.32% to 31.33. Not good news for American Express also, it fell 7.11% to 37.99 after missing second quarter earnings estimates.
In Tokyo, Japanese stocks climbed strongly for the second straight day on Wednesday as crude oil slipped to the six-week low. The Nikkei 225 index jumped 127.97 yen (0.97%) to 13,312.93.IFAonline
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