The FTSE continued to make huge gains in afternoon trading, reaching its highest level since late March after the Federal Reserve unveiled its third round of quantitative easing.
Fed chairman Ben Bernanke's latest round of stimulus comes in the form of an open-ended package to stimulate the housing market with the purchase of $40bn of mortgage-backed securities per month.
The miners and the banks led the FTSE to its six-month peak, the index reaching 5,911 by mid-morning, up 1.52%. The news also lifted stock markets across Europe to their highest level in 14 months.
RBS, Barclays and Lloyds were all up over 3% as RBS announced this morning it is to launch an initial public offering of its Direct Line Insurance Group, completing one of the conditions of its £45.5bn bailout from the government in late 2008.
Rio Tinto climbed 6.29% and Fresnillo saw gains in excess of 10% as metals prices gained on a weaker dollar after the Fed announcement.
The Stoxx Europe 600 advanced 1.4% to 276.19, its highest intra-day level since 8 July last year.
The announcement offered a boost to gold bugs, sending the price of bullion up to a six-month high of $1,777 per ounce, with analysts predicting it could test $1,800.
Both the Dax and the French Cac were also up 1.39% to 7,411 and 1.87% to 3,567 respectively.
An added tier of asset management can of course deliver additional benefits for certain investors, writes Graham Bentley - just be sure you can justify it to the regulator and, especially, the client
The government is "in daily contact" with industry figures over the pensions dashboard as it prepares for the roll-out and its feasibility report, Guy Opperman has said.
Organisation led by Johnny Timpson
From 1 April 2019
Available in eight languages