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According to the Press Association, the index climbed to a seven-week peak of 6,045.2 points, up by 4.1 on yesterday's close. UK banks were among the major winners, boosted by the perception that British capital requirements make them more secure investments.
Shares in the Royal Bank of Scotland were up 0.8p at 43.6p after two European rivals confirmed they would seek to raise £11.5 billion in fresh capital, while Lloyds Banking Group added 1p to reach 69p and Barclays stocks climbed by 4.65p to 299.4p.
Spanish economy minister Elena Salgado moved quickly to quell speculation that her country would be next in line for an emergency financial rescue package, telling reporters that the possibility had been "absolutely ruled out" by the government.
Ms Salgado also insisted that a European Central Bank interest rate hike would have little impact on the Spanish economy, which is already enduring swingeing cuts.
Posted by Clive Arneil
