FTSE rises ahead of US investment plan

The FTSE 100 charged higher this morning as financials rallied in anticipation of the US Government launching its $500bn investment programme later today.

At 8.30am the blue-chip index was up 51.38 points (1.34%) to 3,894.23 with all sectors in the black.

The impending launch of the US Treasury's Public Private Investment Program plan saw Barclays up 6.86% to 112.20 - assisted by rumours the banking giant plans to sell its iShares unit for $5bn - while Lloyds continued to rally, rising 6.51% to 58.90.

Insurers also benefited from the news. Concerns for L&G's capital base and dividend rates were tempered with the insurance giant up 6.07% to 45.40 while Old Mutual rose 10.05% to 48.20.

The consumers sector topped the gainers, with speciality jeweller Signet up 7.45% to 764.50, having renegotiated its borrowing agreements last week, with results for the year ended January 31 expected this week.

Meanwhile, the services sector characterised the losers, with PartyGaming Plc and Thomas Cook falling 2.18% to 247.25 and 2.10% to 233.00 respectively.

Last week Thomas Cook reported both summer and winter bookings were down from a year earlier and announced its chief financial officer would be taking a leave of absence.

The Dow Jones closed down 122.42 at 7,278.38 on Friday while the Nikkei closed up 269.57 at 8,215.53 today.