FTSE jumps 1.6% as banks boost gains

The index of 100 leading shares bounced 1.57% this afternoon as better than expected economic data sent financial stocks soaring to the top the leaderboard.

The FTSE jumped 92.74 points to 6,001.50 just after 4pm.

Financial stocks led the rise, with Lloyds Banking Group topping the group, up more than 5% to 61.00p per share.

They were boosted by the not-as-bad-as-expected news Irish banks will need €24bn more to survive the crisis, well below the €35bn set aside in the EU/IMF financial assistance package.

Positive sentiment was also driven by US non-farm payrolls data out today, which beat analyst expectations and drove that country's unemployment to a two year low at 8.8%.

The Dow Jones rose on the news, and was up 0.63% to 12,397.61.

RLAM economist Ian Kernohan says he does not expect US interest rates to rise until next year at the earliest, despite unemployment continuing to fall in the region.

"Employment levels are rising and the unemployment rate is falling but not by nearly enough to give the Fed itchy fingers," he says.