Banks helped lift London's leading index sharply higher today after Lloyds Banking Group boss Antonio Horta-Osorio received backing for his plans to overhaul the taxpayer-controlled bank.

Banks and housebuilders made gains on the London market today ahead of another expected cut in interest rates and after a surprise lift in house prices.

Banks were in better shape today despite the London market suffering a lack of direction following overnight turmoil across the Atlantic and in Asia.