US hopes push FTSE close to 6,000 mark

London's blue chip index approached its year-high in morning trading, with banking shares among the best performers, as hopes for a resolution to the US fiscal cliff boosted sentiment.

Investors were also optimistic over developments in the eurozone, after Standard & Poor's upgraded Greece's credit rating by six notches. The ratings agency said it was impressed with the currency union's commitment to retaining Greece as a member state.  Optimism on a US budget deal helped boost the FTSE 0.6% to 5,974 in mid-morning trading, pushing it closer to its 52-week high of 5,989. Banks lead the way, with Lloyds Banking Group up 3.4% to 48p, RBS up 2.9% at 313p and Barclays up 1.6% at 265p. The only significant faller was outsourcing group Bunzl, down 4.7% at £10.16 after ...