Banks send FTSE soaring after US surge

The FTSE 100 has opened 3% higher after the Dow Jones added 250 points overnight, with financials leading the surge.

In London, the FTSE rose by 150 points to 5,281 in early trading, as investors reacted to the jump in US markets seen on Monday. The index is currently trading up 2.2% at 5,242, with financials the biggest climbers: RBS is up 8% at 23.64p, Lloyds Banking Group rising 5.4% to 31.27p and Barclays up 6.5% at 165p. The Dow rose by 255 points in Monday's trading to close 2.3% higher at 11,539, with the S&P 500 up 2.8% to 1,210 and the Nasdaq rising 3.3% to 2,562 as US consumer spending figures came in higher than expected and two Greek banks announced merger proposals. News of a propose...