Financials rally as market returns to positive ground

A LATE rally pulled the FTSE 100 Index back above its opening price yesterday as interest rate talk continued to dominate the City.

A strong start on Wall Street following a better-than-expected survey of the US service sector encouraged investors on this side of the Atlantic. And with banks reversing their earlier losses the Footsie crawled back into positive territory, ending the day up 4.6 points at 4146.1.

Traders are almost certain the US Federal Reserve will cut interest rates today but are unsure whether the Bank of England will follow suit tomorrow.