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.

The London Stock Exchange has abandoned plans to merge with the owner of the Toronto Stock Exchange after concluding not enough of the Canadian group’s shareholders would back the deal.

London Stock Exchange vowed to press ahead with a merger with its Toronto counterpart today, despite the emergence of a rival Canadian bidder.

A rival bidder was today poised to scupper a £4bn (€4.59bn) merger deal between the London Stock Exchange and its Toronto counterpart.

The London Stock Exchange is in advanced talks over a potential merger with Canadian bourse TMX.