Banks are once again leading the FTSE 100 gains in early trading, after a number of stocks soared upwards of 10% yesterday on the relaxing of Basel III rules.
The FTSE 100 has opened flat following yesterday's climb as markets await European bank stress tests results.
The FTSE 100 has followed the lead of the US and opened lower this morning, as investors weigh up a gloomy economic update from Federal Reserve chairman Ben Bernanke.
UPDATE 12pm: The FTSE 100 index has climbed almost 1.6% in morning trading after strong late gains overnight on Wall Street.
The manager of the £109m J.P. Morgan Mid Cap investment trust has significantly reduced the fund's gearing on concerns over the UK economic outlook.
Hopes of a strong Q2 earnings season boosted investor sentiment on Tuesday, sending the FTSE above 5,270.