US opens higher on improved sales figures

US shares have built on yesterday’s gains in early trading after data showed US retail sales posted their biggest gain for four months in July.

A 0.5% rise in sales was in line with expectations and the highest increase since April.

In reaction the S&P 500 rose by 1% to 1,184, with the Dow opening 1.1% higher at 11,267 following publication of the figures. The Dow has not risen for two consecutive days since 7 July.

The FTSE 100 index also continued to build on Thursday's 3.1% rise, trading 2.8% higher at 5,307 as investors took a partial ban on short selling in the eurozone as an incentive to look again at UK banking stocks.

Lloyds was up 6% at 34.13p, with Barclays rising 6.3% to 189p and RBS up 5.4% to 26.59p. Miners Glencore and Kazakhmys were also back in favour, both standing up 7% shortly after the US open.

European indices also rose, as did the banks hardest hit over the course of this week. France's Societe Generale rose by 3.7% to €23.8, with BNP Paribas rising by 4.1% to €37.2.

In Belgium, one of four countries to have banned short selling for 15 days, shares in banking group Dexia were up 14.7% at €1.76.