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.
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November