London’s FTSE 100 Index surged 1.4% higher today as hopes of a resolution to the eurozone crisis offset another day of scandal for the UK banking sector.
Barclays shares came under further pressure after yesterday’s 15.5% tumble following revelations of its rate-rigging scandal.
Lloyds Banking group and Royal Bank of Scotland made gains however, as the wider index leapt 78.1 points to 5,571.2 after politicians agreed at a summit in Brussels that struggling banks could have direct access to the EU’s bailout fund without adding to government debt.
Royal Bank of Scotland rose 8.9p to 215.3p, while Lloyds rose 1.2p to 31.1p and HSBC was up 2.9p at 561.1p. Barclays fell another 2% or 2.8p to 162.9p.
Heavily weighted mining stocks were the main drivers of the Footsie gains as the developments in the eurozone boosted hopes for the global economy.
Miner Evraz was the biggest riser, up 19.7p at 260.7p.
Outside the top flight, online bookmaker Betfair saw its shares rise 2% after it revealed £1billion had been bet on the Euro 2012 football championship. Shares were up 13p at 748p.
The biggest Footsie risers included CRH ahead 84p to £12.32, Weir Group up 80p to £15.30 and Hargreaves Lansdown up 26.5p to 529.5p.
Among the biggest Footsie fallers were Pennon Group down 15p at 762p, Vodafone down 1.6p to 179.3p and Tesco down 1.8p to 310.1p.
Stuart Lamont, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted Hunting moved 4.9% higher to close the day at 723.25p, AMEC added 3.7% to £10.02 and BG Group climbed 3.1% to £13.
On the fallers board, Faroe Petroleum slipped 2.3% to 147.625p, John Menzies fell 1.3% to 599.75p and AG Barr closed 1.1% lower at 398.75p.