Is the market clutching at straws? The FTSE 100 was up a substantial 1.9%, or 110.4 points, this morning, at 5898.
The banks, which have underperformed in the past month amidst growing financial turmoil, helped lift the FTSE as investors hoped that some of them would raise their dividends.
More than £25bn has been wiped off the value of Britain's major banks this month, but they were looking considerably better this morning.
Barclays was the top riser, up 25.5p at 453p, Lloyds TSB followed close behind with a 16.7p increase to 412.5p, and HBOS rose 26p to 634.5p.
Weekend reports suggested both Barclays and Lloyds were likely to increase their dividends when they reported results this week.
In fact, the mood was so buoyant that there were few losers on the FTSE 100, and analysts said this was likely to continue through the day. The US markets are closed for Presidents' Day holiday, so the FTSE will not be tempted to follow Wall Street's lead.
