Global banking shares drove markets higher today following the outcome of the Basel III Committee meeting to reform the banking sector.
The FTSE gained 1.05% or 57.92 points to reach 5,559.75 by 3.15pm, lead by the financial sector as markets digested the implications of the new 7% minimum capital buffer imposed on the banks.
The sector gained 1.94%, with capital goods and basic materials also performing strongly, up 1.96% and 2% respectively.
Lloyds rose 3.21% and Royal Bank of Scotland climbed 2.82%, making them the strongest performers among the big banks.
Standard Chartered, HSBC and Barclays also saw their share prices climb.
Meanwhile insurance giant Prudential moved 3.5% higher to 620p per share on the back of bid interest from a Chinese potential buyer.
Asian bank shares also rallied before markets closed, while in the US, the Dow Jones was at 10,557.45 in early trading, up 0.9% following the Basel III announcement.
Financial stocks Bank of America and J.P. Morgan Chase were among the strongest beneficiaries, rising 3.3% and 3.6% respectively.
Fears on Wall Street about an economic slowdown have also been calmed by the news Chinese industrial production rose 13.9% year on year in August.
Joined as head of strategy, multi asset, in June
Group income protection
Nine in 10 do not have income protection
Set to become part of Single Financial Guidance Body