FTSE bounces back on Europe hopes

The FTSE has opened 0.8% higher, building on yesterday's 3.2% rise, as markets hope policymakers are moving to combat the eurozone crisis.

The FTSE 100 rose by 0.4% to 5,124 shortly after opening, adding to the 3.2% gain posted yesterday that pushed the blue chip index back above 5,000. Banks and miners, which have suffered the brunt of the most recent falls, were the index's largest risers. Barclays was up 2.7% to 160p, Royal Bank of Scotland rose by 2.6% to 23.1p and Rio Tinto was up 2.5% to £29.77. A similar picture in Europe saw Germany's Dax rise by 0.8% to 5,516 and France's Cac 40 open up 0.9% to 3,000, with banks again among the largest gainers. Yesterday the Dax leapt by 4.9% to 5,473 and the Cac 40 rose by 4...