Footsie soars after loans boost

Investors have dived into the markets after six central banks including the Bank of England announced a co-ordinated bid to boost lending to households and businesses.

The FTSE 100 Index was nearly 3% higher after the banks, including the European Central Bank (ECB) and US Federal Reserve, agreed to lower interest rates on US dollar loans, which should encourage lending between banks and help stave off economic stagnation.