FTSE gains on bank regs relief

The FTSE 100 rose 0.88% or 48.58 points to 5,550.22 boosted by new financials regulation and positive economic data from China.

A weekend meeting by the Basel III committee ended with regulators agreeing banks will have to increase capital provision to 7%, up from the current 2%. Despite the stark increase, the changes will not have to be implemented until 2015, boosting financial stocks in early morning trading. RBS was 3.44% higher to 50.2p while Lloyds advanced 3.05% to 77.93p. However, Prudential was the biggest riser, up 4.25% to 625p, on news Chinese investors are eying the insurer. The biggest faller was Associated British Foods, down 2.48% to £10.61, despite revealing it expects underlying results t...