FTSE climbs on Italian banking decision

London’s top flight index pushed higher yesterday, with UK banks enjoying a strong session after the Italian government committed 17 billion euros (£15bn) to wind up two failed banks.

The FTSE 100 Index closed up 22.67 points at 7,446.8 as investors cheered a move by Italian ministers to split Veneto Banca and Banca Popolare di Vicenza into “good” and “bad” banks.

Shares in Royal Bank of Scotland rose 4.2p to 249.8p, while Barclays climbed 2.4p to 199.9p and HSBC stepped up by 8.2p to 688.9p.

Blue-chip stocks enjoyed a boost following the announcement that Theresa May had reached an agreement with the Democratic Unionist Party (DUP) to prop up her minority Government.

Strength returning to the oil price also provided some uplift to the London market. Brent crude was up 0.6% at $45.79 (£36) a barrel.

Sterling was marginally up versus the dollar at 1.271 on the news that Mrs May had struck a deal to bring political stability to the UK.

However, the pound still struggled against the euro, slipping 0.1% to 1.137, as figures from the banking sector showed consumer borrowing had eased back last month.

Shares in RBS rose 4.2p to 249.8p.