FTSE opens 5% higher after bail-out

The FTSE 100 Index pulled out of its tailspin today as investors welcomed plans for a dramatic bail-out of the European banking industry.

Banking shares in London were among the risers as the Footsie opened 200 points higher at 4132, a gain of 5%. The top flight fell almost 9% on Friday at the end of the market’s worst week since the 1987 crash.