FTSE 100 rises in early trading

Tuesday, 05 May 2009 12:00

The FTSE 100 rose strongly in early trading as investors returned to the markets after the May Day bank holiday, rising 2.03 per cent to 4,329.33 by 08:40 BST.

The UK's leading share index jumped on the back of a US rally, with financials and the mining sector leading the way.

Royal Bank of Scotland was the highest climber, with a 14.09 per cent increase in its share price to 49.50p, while Kazakhmys was close behind with a 13.4 per cent jump.

British Airways stocks also recovered after last week's falls, triggered by swine flu fears, to rise by 7.43 per cent on the index.

Over in the US, the Dow Jones rose 2.61 per cent, while the S&P 500 was up by 3.39 per cent.

Reports suggesting the US banks' balance sheets do not need shoring up as much as had been feared helped push the sector higher, while firmer commodity prices boosted miners.

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