FTSE extends rally after S&P breaches 1,300 barrier

The FTSE 100 continued its rally this morning off the back of a strong showing in the US where better than expected earning pushed the S&P 500 through the 1,300 point barrier.

The S&P 500 gained 1% to close at 1,310, while in Asia the Nikkei also jumped 1.1% to 9,536 points.

The UK's leading share index was up 0.4% at 5,903 points early on in reaction, having closed last night at its highest level for two weeks.

Investors were also buoyed by the agreement in the eurozone of a bailout plan.

UK financials were leading the rally as a result, with Schroders up 0.9% at £17.59.

Old Mutual Asset Managers (OMAM) also climbed 0.2% to 133.5p, but there was mixed numbers from the majors.

BP dropped 1% to 476.2p after its tie-up with Rosneft was blocked in a shock move.

However, Shell climbed off the back of rising oil, shares ahead by 0.54% at £22.37.

Its gains came as Brent Crude rose 0.3% to $116 a barrel.