Banks, energy stocks push FTSE 100 higher on open as crisis fears ease

London shares rose at the open on Friday, with bank stocks rallying as support measures eased fears of a global banking meltdown and as commodity-linked stocks tracked commodity prices higher. By 0815 GMT, the blue-chip FTSE 100 rose 1.1%, extending gains after rising nearly 1% in the previous session.

London shares rose at the open on Friday, with bank stocks rallying as support measures eased fears of a global banking meltdown and as commodity-linked stocks tracked commodity prices higher.

By 0815 GMT, the blue-chip FTSE 100 rose 1.1%, extending gains after rising nearly 1% in the previous session. Fears of a global banking crisis began to ease after major U.S. banks offered a $30 billion lifeline for beleaguered First Republic Bank.

British banks gained 1.4%. Industrial metal miners took an early lead, jumping 3.3% as most base metal prices rallied.

Energy stocks also surged 3.5% as majors Shell and BP rose 3.3% and 3.9%, respectively, tracking higher oil prices. Crude prices firmed after a meeting between Saudi Arabia and Russia calmed markets amid strong China demand expectations.

The more domestically focussed FTSE 250 midcap index gained 0.5% as Bodycote rose 6.4% after the thermal processing service provider reported higher full-year revenue.