FTSE recovers from slow start

The FTSE 100 Index has recovered from a lacklustre start after strong figures from banking giant HSBC buoyed investor confidence.

Europe's biggest bank topped the table of Footsie risers with a 3% gain of 24.5p to 789p, helping to lift a host of banking shares.

Comprising a major chunk of the blue-chip index, the banks' rise helped lift the wider market with the Footsie up by 31.2 points at 4129.6 by mid-morning.

London shares had started slowly after sharp falls on Friday and a poor performance on Wall Street last week.

Following HSBC's lead, banks powering higher included Royal Bank of Scotland 23p better at 1754p, Barclays ahead 3p at 461.5p and Abbey National gaining 8.25p at 550p.

Meanwhile Standard Chartered was up 22p at 808p ahead of its own interim results due out on Wednesday.

Away from financials, mining group Xstrata was feeling the pressure with a 17.5p fall to 420.25p after announcing a £372m (€530m) bond issue to restructure its debts in the wake of the acquisition of Australian copper and coal company MIM Holdings.

But acquisitions also drove some positive movement with software group Sage gaining a penny at 186.75p after announcing the £66 million takeover of South African group Softline.

Outside the top flight oil and gas group Cairn Energy was up 4% or 14p at 326p after announcing plans to buy Shell's stake in exploration and production projects in Bangladesh.

Elsewhere, travel firm ebookers was off 3.5p at 546.5p after reporting a hangover from the effect of War in Iraq and the SARS outbreak.