Footsie rallies with aid of banks and insurers

The FTSE 100 Index is up 63.4 points at 3547.2 thanks to rises in banking, telecom and drug stocks.

Among the banks, Barclays is up 17.75p at 346.5p, Lloyds TSB has risen 7.25p to 377.75p, Royal Bank of Scotland has climbed 30p to 1330p and HBOS is ahead 15.5p to 553.5p.

Abbey National has also climbed higher, up 12p to 397p, after being hit by fears recently over the health of its Scottish Provident life assurance unit.

Of the insurers, Prudential is up 15.25p at 372p, Aviva has risen 14.25p to 387.25p, while Britannic has climbed 7.5p to 108.5p.

Elsewhere Vodafone is also making up ground, climbing 3.25p to 110p, while mmO2 is up 0.25p at 46.25p and BT Group has moved 4% higher, up 6.5p at 173.75p.