FTSE recovers on back of HSBC figures

The FTSE 100 Index has put back most of Friday's heavy slump as blue-chip shares benefit from strong figures from HSBC.

Europe's biggest bank topped the list of Footsie risers with a 3% gain of 25.5p to 790p, helping to lift a host of other stocks in the sector.

Comprising a major chunk of the blue-chip index, the banks' rise meant the Footsie reached lunchtime 45.9 points stronger at 4144.3.

That represented a healthy bounce back from Friday's 58 point slump as the market also looked towards a positive start to New York trading.

The figures from HSBC showed a 26% rise in first half pre-tax profits because of the impact of major US acquisition Household.

In Britain, where HSBC is one of the big four banks which dominate the high street, the bank said it gained market share and had increased fee income.

Following HSBC's lead, banks powering higher included Royal Bank of Scotland, 48p better off at 1779p, HBOS ahead 12.5p at 791p and Abbey National gaining 7.25p to 549p.

Standard Chartered, which like HSBC has a strong presence in Asia, was up 26p at 812p ahead of its own interim results on Wednesday.

Away from financials, mining group Xstrata was feeling the pressure with a 17.25p fall to 420.5p after announcing a £372m (€508m) bond issue to restructure its debts in the wake of the acquisition of Australian company MIM Holdings.