FTSE up more than 75 points

Barclays set the pace on the London market today as it kicked off the UK bank reporting season with a bumper profits haul.

The banking giant saw its shares rise 7% after it reported annual profits of £11.6bn (€13.3bn), smashing City expectations.

Soaring sentiment took hold of the wider market and the FTSE 100 Index closed 76.6 points higher at 5244.1 a rise of 1.5%.

World markets rose as investors looked beyond recent fears over the future of the debt-laden Greek economy.

Asian stocks were modestly higher overnight, while European markets were on the front foot as EU finance ministers warned Greece to remove the risk of jeopardising the euro area.

The euro, battered to a nine-month low last week as Greece's problems undermined confidence in the common currency, gained against the dollar today.

The pound fell against the euro, but gained against the US dollar and £1 was worth €1.14 and $1.57.

Wall Street - which was closed yesterday for the Presidents Day holiday - was up 1% amid buoyant trading and better-than-expected earnings for companies including new Cadbury owner Kraft Foods.

In London, news that inflation hit 3.5% in January failed to shake the positive mood as such a level had been widely anticipated.

Anthony Grech, market strategist at IG Index said investors would focus on UK unemployment figures tomorrow and the minutes from the latest Bank of England interest rate decision.

"There's no escaping from the fact however that the FTSE is set to post its sixth day of gains and the malaise with which started the year is becoming a distant memory," he said.

Barclays topped the risers board - adding 18.7p to 293.75p - after trading was fuelled by the growth of its investment banking arm.

Rivals Royal Bank of Scotland and Lloyds Banking Group lifted 1.66p to 33.26p and 2.2p at 49p respectively ahead of their own figures next week.

Commodities stocks were also in focus as oil prices rose above 75 US dollars a barrel.

Miners were on the front foot as Vedanta Resources cheered 5% - or 123p to 2490p - Randgold Resources added 183p to 4693p and Eurasian Natural Resources lifted 36.5p to 966.5p.

In other corporate results, Mr Kipling and Hovis owner Premier Foods rose 3% after it returned to the black with a bottom-line profit of £47m (€53.9m). Chief executive Robert Schofield said the company had achieved a "tremendous amount" in 2009 as he mapped out targets for growth over the next three years.

Shares responded with a rise of 1.11p to 33.4p.

But Domino's Pizza UK & Ireland dropped 0.7p to 327p despite reporting profits up 27.8% to £29.9 million and that 2010 had started well. Domino's warned it remained cautious given the uncertain economic climate.

The biggest Footsie risers were Barclays up 18.7p at 293.75p, Royal Bank of Scotland up 1.66p at 33.26p, Vedanta Resources up 123p at 2490p and Lloyds Banking Group up 2.2p at 49p.

The biggest Footsie fallers were Intercontinental Hotels down 27p at 893p, Imperial Tobacco off 35p at 2004p, Reckitt Benckiser down 33p at 3282p and Thomas Cook down 2.2p at 228.2p.