Hopes that Barack Obama's $825bn package to curtain the US recession would be passed by the House of Representatives has given Wall Street an opening lift.
The Dow Jones Industrial Average is around 100 points higher in early trading, with banks moving higher on optimism the Obama proposals will stabilise the sector. Investors were also cheered by news that Wells Fargo had maintained its dividend and did not need more taxpayer funds.
All this reinforced the rise in UK banks, with Lloyds Banking Group continuing to lead the way. Lloyds jumped 27.5p to 94.6p after a buy note from analysts at Citigroup, the bank's house broker. Royal Bank of Scotland has risen 4.2p to 19.9p, while Barclays is 17.8p better at 107.8p and HSBC is 54.25p higher at 585.5p.
So the FTSE 100 is ahead 88.87 points at 4283.28 despite miners falling sharply on fears of cash calls in the sector. Xstrata is down 58.5p at 626.5p while Rio Tinto - which said this morning an issue of equity was one option to help reduce its debt - has lost 87p to £15.52.
Elswhere brewer Greene King is up 53.25p to 405p after better than expected Christmas sales, which prompted Numis to move its recommendation from add to buy with a 440p price target.
Sports retailer JJB added 0.6p to 7.8p - an 8% increase - after the Office of Fair Trading said that the purchase of a 22% stake in the company by rival Sports Direct, down 1.25p to 52p, had not created a merger situation.
