U.S. Fed news boosts London stock market higher

News that the U.S. Fed may continue to support U.S. banks boosted global markets and the London shares closed 1.3 percent higher with the FTSE 100 index ending up 89.1 points at 5,529.6.
The banking sector led the rise with Lloyds TSB up 6.65 percent, Barclays up 4.6 percent and Royal Bank of Scotland adding 3.7 percent.
Shares in market research firm Taylor Nelson Sofres jumped 11 percent after ad giant WPP launched a 1.08 billion pounds hostile takeover bid for the firm.
Shares in house builders rose despite more gloomy news from the sector from Bovis Homes and Redrow. Both companies said they were cutting staff numbers by 40 percent as they sought to cope with the housing downturn.
However, Redrow shares jumped 3.6 percent while Bovis Homes rose 1.67 percent.
Beleaguered Bradford and Bingley shares ended the day 27 percent higher.
Source:Xinhua