FTSE bounces as investors snap up banks

London's leading share index has rebounded from yesterday's turbulent session, with investors finding value in depressed bank stocks.

Around £49bn was wiped from the FTSE 100 yesterday with banking and sovereign debt fears sending the market into turmoil. However, investors have returned today after the heavy sell-off seen Monday, driving the index to gain 1.08% or 55 points at 5,157, at 10am. Banking stocks have been snapped up after seeing heavy selling, with Royal Bank of Scotland up 3.72% or 0.81p, to 22.5p, with Lloyds also performing strongly, gaining 3.59% or 1.1p to 31.75p. European markets have made modest gains from yesterday's slump, with the Cac up 0.67% to 3,019, and the Dax up 0.38% to 5,266. Sto...