RBS leads London banks higher

Equities markets in Europe were higher Wednesday as banks gained on a better-than-expected quarterly report from a Spanish bank.

The FTSE 100 added 2.27 percent to 4,189.59 in London, while the FTSE 250 was up 2.68 percent to 7,346.69.

Banks led winners on the 100 as Standard Chartered (LSE: STAN; SEHK: 2888) was 7.48 percent higher, Lloyds Banking Group (LSE: LLOY) added 8.26 percent, Barclays Bank (LSE: BARC; NYSE: BCS; TYO: 8642) was up 10.44 percent and Royal Bank of Scotland (LSE: RBS; NYSE: RBS PRM) led the index as it gained 12.54 percent.

Over on the 250, pubs operator Enterprise Inns (LSE: ETI) led winners as it added 24.03 percent, but specialty chemicals company Croda International (LSE: CRDA) had the worst day on the index with a decline of 5.64 percent.

Property investor Liberty International (LSE: LII) had the worst day on the 100 as it dropped 7.4 percent.

The FTSE Eurofirst 300 was up 1.96 percent to 816.93 while the Dax added 2.11 percent to 4,704.56, the CAC-40 was 2.16 percent higher to 3,116.94 and the IBEX gained 2.71 percent to 8,891.3.

Spanish bank Banco Santander (IBEX-35: SAN; LSE: BNC; NYSE: STD) was up 6.1 percent after its quarterly report was better than analysts had anticipated.

Among other banks in the region, Credit Agricole (Euronext: ACA) added 5.5 percent while BNP Paribas (Euronext: BNP; TYO: 8665) gained 6.06 percent.

Some travel-related shares, hurt recently by fears surrounding the swine flu outbreak, saw advances as hotels operator Accor (Euronext: AC) was up 4.28 percent and airline Lufthansa (FWB: LHA) was 7.14 percent higher.

Most markets in the Asia-Pacific region were higher as Tokyo exchanges were closed in observance of a holiday.

The Taiex was up 0.31 percent to 5,614.06 while the Straits Times Index added 2.28 percent to 1,849.57, the Hang Seng was 2.76 percent higher to 14,956.95, the Shanghai Composite gained 2.78 percent to 2.468.19, the Kospi was up 2.94 percent to 1,338.42 and the Sensex added 3.65 percent to 11,403.25.

In Australia, on the other hand, the Sydney Ordinaries fell 0.27 percent to 3,661.9 and the S&P/ASX200 dropped 0.35 percent to 3,695.3.

News from the Commerce Department that the US gross domestic product was 6.1 percent lower in the first quarter of the year, more of a decline than expected but better than results from the last quarter of 2008, did not stop New York markets from seeing gains in early afternoon trade.

At just past 1 p.m. in New York the Dow Jones Industrial Average was up 1.97 percent to 8,174.65 while the Nasdaq Composite was 2.35 percent higher to 1,713.14 and the S&P 500 had added 2.11 percent to 873.24.

Also helping markets was new data showing that consumer spending in the US was up 2.2 percent in the first quarter and quarterly reports that have been better than expected.

US airlines saw gains as investors bet that air carriers will not lose much money to travel fears raised by the swine flu outbreak in Mexico.

In early afternoon trade UAL (NAS: UAUA), the parent company of United Airlines, was up 3.76 percent while Delta Air Lines (NYSE: DAL) gained 4.77 percent.

Story link: RBS leads London banks higher