FTSE hits highest level since mid-2008

The FTSE was trading more than 40 points higher this morning at 5,933, its highest level since June 2008.

London's leading index hit its highest level in more than two-and-a-half years last week but has reached a fresh high this morning.

It was 0.7% higher in early trading, with Fresnillo, Xstrata and Vedanta Resources all adding about 2%.

RBS is also higher following an NAO report suggesting the government could have charged it and Lloyds Banking Group an extra £3.9bn to use the Asset Protection Scheme for their toxic debts.

Cairn Energy, which is still awaiting a decision by the Indian authorities on whether it can sell a majority stake in its unit in the country to Vedanta Resources, added 0.81% to 417p.

Elsewhere, International Power and Reckitt Benckiser Group are also higher.