FTSE up after Dubai bailout

London’s FTSE 100 Index posted healthy gains today after Dubai’s £6bn (€6.7bn) emergency bailout from Abu Dhabi soothed nerves around financial stocks.

The Footsie rose 1% or 52.6 points to 5314.4 by lunchtime amid relief over the Middle East situation after oil-rich Abu Dhabi handed over rescue cash to help Dubai pay debts owed by its struggling Dubai World conglomerate.