Banks extend gains in positive start for FTSE

Banks are once again leading the FTSE 100 gains in early trading, after a number of stocks soared upwards of 10% yesterday on the relaxing of Basel III rules.

In early trading, London's leading index of shares was up 14.95 points, or 0.28%, to 5,380.62 points. RBS leads the charge early, up 2.78% to 51.75p - while Barclays and Lloyds are 2.12% and 1.2% higher respectively. Banks are extending gains from Tuesday, when they were boosted by strong earnings from UBS and the new Basel III capital rules proving less stringent than feared. They had also gained on Monday after the vast majority of banks passed stress tests. Britain's top share index hit a 10-week closing high yesterday, as a buoyant banking sector countered weak US consumer conf...