Business

FTSE 100: Bank shares rise after stress tests

Market trader (file picture) Image copyright Getty Images

(Close): Banks were the big gainers after they passed the latest stress tests, with Lloyds Banking Group and Barclays closing with gains of more than 3%.

A Bank of England report found that none of the UK seven biggest banks needed to come up with a new capital-strengthening plan.

Mining stocks survived the latest disappointing Chinese economic data unscathed, with BHP Billiton up 1.2%.

The FTSE 100 rose 0.62% to 6395.65.

Babcock fell 1.57% after Citi cut its recommendation for the engineering and support services company to "sell".

Outside the top flight, shares in Argos-owner Home Retail Group jumped 3.4%. It followed a Financial Times report that the group's Homebase DIY chain could be sold.

On the currency markets, the pound rose 0.13% against the dollar to $1.5077, and dipped 0.42% against the euro to €1.4194