HBOS news dominates FTSE

Financial stocks dominated the London market today after HBOS ended weeks of speculation by ruling out a takeover bid for Abbey National.

Investors reacted with relief that HBOS would not now become embroiled in a drawn-out bidding battle with Spanish bank Santander by making it the highest riser on the FTSE 100 Index, up more than 4% or 30p to 744.5p.