Wall Street Cornerstone Citigroup Inspires UK Banking Resurgence; Britain
The FTSE 100 Index powered 1.7 per cent ahead for a second day of strong gains after a dramatic U-turn on relief over Citigroup's first-quarter figures.
London's blue chips extended the 2.5 per cent rally on Thursday after a turbulent week, which saw the Footsie plunge to three-year lows before recovering over two days.
Better-than-expected results from Wall Street banking giant Citigroup helped continue the bounce back from bankings, which drove the FTSE 100 90.1 points higher to 5376.4.
Citi posted a pounds 1.25 billion second-quarter loss, well ahead of the pounds 3bn deficit feared.
It prompted a reversal of more than 130 points, with the FTSE 100 having been mired in negative territory during mid-morning.
US-facing building supplies firm Wolseley led the charge amid hopes the credit writedown corner may have been turned. The group's shares closed up more than 14 per cent, or 41.25p to 327p.
Barclays followed, confirming it raised pounds 4.5 billion of new capital through a share issue.
Wealthy overseas investors such as sovereign wealth funds are providing most of the funds after just 19 per cent of existing shareholders took part. Shares were initially flat after the news, but jumped 10 per cent, or 29.75p to 320.25p, amid the Citi-inspired rally.
Lloyds TSB was next, adding 30.5p to 331p, with Royal Bank of Scotland enjoying a second day rebound, ahead 10 per cent, rising 18.1p to 197. …