Dubai bailout boosts early FTSE

London markets have advanced strongly this morning on news Abu Dhabi is to bailout heavily indebted neighbour Dubai.

At 10:30am, the FTSE 100 had risen 48.04 points (0.91%) to 5,309.61 - boosted by the $10bn loan to Dubai, as well as positive financials and miners.

The London Stock Exchange Group led the way, up 7.42% to 746p; while Standard Chartered was 4.27% higher to £15.74. Vedanta Resources and Lonmin were also in demand.

Meanwhile, Dairy Milk maker Cadbury today recommended shareholders reject the bid from rival Kraft Foods, which it says substantially undervalue the company. Cadbury has advanced 0.32% early.

In addition, British Airways revealed it has begun to work with trustees to develop a recovery plan, as its pension deficit swelled to £3.7bn. The airline is 0.2% behind.

Elsewhere, the news from Dubai helped the Nikkei to reverse strong earlier losses, eventually closing down just 0.02% to 10,106 yen.