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The FTSE 100 index moved up 0.3 per cent, or 15.56 points, but struggled to get a hold above the 5,700 resistance level and could only reach 5,677.98, reports Reuters.
Banks made strong gains, however, as confidence rose in the eurozone and JPMorgan Chase's fourth-quarter results returned the expected degree of profit.
Royal Bank of Scotland rose by 6.5 per cent after its recent restructuring plans, while Peers Lloyds and Barclays jumped 2.8 percent as Italy and Spain reduced the cost of their debt and improved investor sentiment in Europe.
Italy sold three-year benchmark paper at a gross yield of 4.83 per cent and the auction drew bids of 1.22 times the amount on offer, assuaging fears over the sovereign debt crisis.
The European Central Bank decided to keep interest rates on their main refinancing operations at the same level yesterday as the eurozone appeared poised for a degree of recovery.
Posted by Clive Arneil
