The FTSE 100 recovered ground this morning after banking stocks took a battering following the Basel Committee's recommendation yesterday banks need to hold significantly more capital reserves to prevent another crisis.
As at 10.30 GMT, London's leading share index had advanced more than 63 points, or 1.22%, to 5,281, with blue chip companies leading the charge.
Barclays plunged 3.4p, or 1.24%, to 270p, while Royal Bank of Scotland was down 2.39% to 30p and Lloyds Banking Group down 1.92% to 50p.
The Basel Committee on Banking Supervision, the influential group of central bankers and financial supervisors, unveiled proposals on Thursday demanding lenders hold more capital. Banks plunged in late Thursday trade as a result.
Schroders, Liberty International and BG group are among the morning's winners and resource stocks also helped swing the index back into positive territory.
THE Dow Jones closed yesterday down 132 points to 10,308 with US stocks falling as the dollar rallied compared to other currencies.
Citigroup fell as investors were turned off by the lower-than-expected share price for its secondary offering and the government's decision not to sell its stake.
JP Morgan Chase was down 2.64%, whilst Goldman Sachs and Morgan Stanley were hit by earnings downgrades.
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