RBS and Old Mutual drive FTSE higher

The FTSE 100 opened in positive territory as strong results from majority-nationalised bank RBS crowned off a largely impressive results week for the UK banking sector.

London's leading index of shares was up 28 points, 0.48%, to 5,386 in early trading - with Old Mutual and RBS leading the charge into positive territory.

Old Mutual today reported a 43% jump in operating profits and RBS announced profit of £1.14bn for the half-year. The healthy figures triggered a rebound in shares after the FTSE shed 0.38% yesterday on the back of disappointing US jobless claims.

Old Mutual, leading the winner's board, is nearly 5% higher, and RBS nearly 2% ahead. Prudential also an early winner, along with Randgold Resources and ARM Holding.

However, Barclays is down 3.5%, following a similar strong slide yesterday.

The FTSE's rise is mirrored throughout Europe, with Germany's Dax up 0.58% and Frances' Cac 40 0.48% higher.

Despite Europe's buoyant start to the day's trading, investors nervously await key jobs data from the US out later today. The Dow closed yesterday down 0.05%, as welfare claims figures suggested the US recovery could be slowing.