Headline shares stormed ahead in early deals today, sentiment boosted by news of an EU deal to protect European finances and in anticipation of an imminent deal to form a new UK government. At 8:30am, the FTSE100 was up 170.65 points at 5,293.67 with the FTSE250 ahead 371.5 points at 9,863.39 and the FTSE Smallcaps 26.1 points better at 2,812.27. In the US Friday, the DJIA closed down 140 points at 10,380, the Nasdaq Composite lost 54 points at 2,266 and the S&P500 fell 17 points at 1,111. In Asia today, the Nikkei was up 166.11 points at 10,530.7, while the Hang Seng was recently ahead 476.9 points at 20,397.19.

LONDON MARKETS

The BoE Monetary Policy Committee will announce its latest decision on UK interest rates at 12 noon; the decision having been delayed due to the General Election. Analysts anticipate no change to the current record low of 0.5%.

Markets in London stormed ahead in early trade as investors welcomed an EU package of measures to stabilise the eurozone, including the creation of a 720bn stability fund.

Banking shares led the charge, with Barclays (LON:BARC) topping the leaderboard with a rise of 36.25p (12.8%) at 319.95p. Lloyds jumped 5.33p at 58.86p and Royal Bank Of Scotland Group Plc (LON:RBS) gained 3.88p at 49.38p.

Insurer Prudential (LON:PRU) gained 13p at 556p as it appeared close to a final deal with the FSA which would give the Go-Ahead Group (LON:GOG)- for its planned acquisition of AIA.

Aviva (LON:AV.)> and Legal & General Group (LON:LGEN)& also made firm progress, ahead 23.2p at 326.6p and 4.75p at 80.35p, respectively.

Fund managers were also in the ascendancy on the new enthusiasm for financial issues, with Man Group (LON:EMG) up 16.5p at 226.6p and Schroders (LON:SDR) rallying 58p at 1,387p.

Mining shares recovered strongly, with Kazakhmys (LON:KAZ) the best of them, up 102p at 1,299p. BHP Billiton (LON:BLT) gained 111.5p at 1,976p on reports it is to take a leaf out of Rio Tinto's book and place some of its plans for expansion in Australia on hold in reaction to the planned 40% supertax. Rio Tinto (LON:RIO) soared 200.5p at 3,328p.

Lonmin (LON:LMI)> surged 98p at 1,783p on reporting a much improved financial performance in the half-year to end-March, with underlying profit…

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