The London market surged more than 3% today after six central banks including the Bank of England announced a move aimed at boosting lending to households and businesses.
The banks, also featuring the European Central Bank and US Federal Reserve, agreed to lower interest rates on US dollar loans, which should encourage lending and help to stave off another credit crunch.
The FTSE 100 Index surged as soon as the measure was announced and closed 168.42 points higher at 5,505.4.
Banks led the charge – Lloyds Banking Group was ahead 7%, or 1.6p at 24.8p and Royal Bank of Scotland was 1.5p higher at 20.99p
Cairn Energy was one of just five fallers after it reported more disappointing results from its exploration activities in Greenland. Cairn shares were 2.7p lower at 272.3p, a drop of 3%.
Meanwhile, shares in business software firm Sage were 15.1p higher at 290.1p after it increased its dividend by 25% and results showed an 8% rise in full-year profits to £352.6million.
But infrastructure services firm Mouchel slumped by 30% or 5.3p to 12.25p after it reported full-year losses of £65million and warned short-term prospects looked challenging.
Pub operator Marston’s saw its shares rise after it said it will create 1,000 jobs next year by opening 25 pubs. Shares were up 2.5%, or 2.3p to 95.8p.
The biggest Footsie risers included Antofagasta up 100p at £11.84 and Barclays ahead 11.3p.
The biggest Footsie fallers were National Grid down 16.5p at 624.5p, Resolution off 4.9p at 235.6p, Tate & Lyle down 11.5p at 672.5p and Capita Group off 8p at 630p.
Barry Shepherd, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted that risers included BG Group which added 3.7% to 1,358.5p, Wood Group rose 4% to 652.25p and Petrofac closed 6.1% up at £14.49.
Fallers included Xcite Energy, off 4.1% to 112.25p, while Wiseman Dairies finished the day 5% lower at 250.875p.