FTSE extends rally after S&P breaches 1,300 barrier

The FTSE 100 continued its rally this morning off the back of a strong showing in the US where better than expected earning pushed the S&P 500 through the 1,300 point barrier.

The S&P 500 gained 1% to close at 1,310, while in Asia the Nikkei also jumped 1.1% to 9,536 points. The UK's leading share index was up 0.4% at 5,903 points early on in reaction, having closed last night at its highest level for two weeks. Investors were also buoyed by the agreement in the eurozone of a bailout plan. UK financials were leading the rally as a result, with Schroders up 0.9% at £17.59. Old Mutual Asset Managers (OMAM) also climbed 0.2% to 133.5p, but there was mixed numbers from the majors. BP dropped 1% to 476.2p after its tie-up with Rosneft was blocked in a s...