Banks boost FTSE after Ireland agrees €85bn rescue package

Banks led the FTSE 100 index 0.6% higher in early trading to 5,704.96 as investors showed their relief after Ireland agreed an €85bn (£72.5bn) rescue package.

Royal Bank of Scotland rose 3.4% to 40p while Barclays climbed 2.4% to 266.1p, and Lloyds Banking Group was 2.2% higher at 63.21p. Prudential was also up, by 2.8% at 593p. Among this morning's losers, International Power fell 1.1% to 412.3p after UK energy market regulator Ofgem announced it will review whether the market is working well for consumers. Autonomy Corporation also dropped, by 1.3% to £13.24, after its inclusion in a list from J.P. Morgan of stocks to avoid in 2011. Resolution slid 0.9% to 223p after J.P Morgan Chase initiated its coverage of the company with an 'under...