Banks push FTSE past 6,500 mark

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The FTSE 100 has passed the 6,500 mark, ending the day up 53.8 points, or 0.83%, to 6,516.2, and pushing the index to a new six-and-a-half year high.

Banks have driven the gains following takeover speculation in the sector, with Royal Bank of Scotland up 2.37% to £20.71, on confirmation of its group bid for ABN Amro - with Fortis and Banco Santander - while Alliance & Leicester added 2.37% to £11.64. Bradford & Bingley added 2.67% to 471.25p, although Vedanta Resources posted the biggest gains with a rise of 3.29% to £14.43, while BHP Billiton climbed 2.43% to £11.80 as metal prices improved. However, Imperial Tobacco Group limited gains with a fall of 1.99% to £22.17, on reports it is considering launching another offer for Franco...

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