Banks lead FTSE fight back

The FTSE 100 fought back on opening today with banks recovering some of the ground they lost yesterday after the Eurozone debt crisis and US economic uncertainty sapped confidence.

Following a grim session the financial sector found its feet today, clawing back losses which were partly triggered by analysts criticising European bank stress tests.

Barclays led the recovery with its stock surging by 3.71 per cent in early trading.

RBS rose 1.9 per cent despite being hit with the news that it was being sued by US regulators over the alleged misrepresentation of some of its mortgage securities.

Lloyds Group was up 2.7 per cent as the sector bounced back. Its gains came despite restructuring chief Nathan Bostock quitting the firm to join its rival, Lloyds Banking Group, as the new head of wholesale banking.

Insurance buyout vehicle Resolution was up 2.4 per cent as the financial sector pegged back losses. Other gainers included BSkyB which was up two per cent as Rupert and James Murdoch prepared to face a grilling from MPs over the phone hacking scandal which scuppered a bid for the company.

Globally News Corp shares lifted by four per cent as Rupert Murdoch sought to reassure investors that he was still holding the reins of the company despite its tarnished image.

On the down side British Land dipped by just over one per cent on London's blue chip index while broker Hargreaves Lansdown dropped 0.7 per cent. Utility company Severn Trent was down by a similar amount.

Software company Autonomy also edged down by around 0.5 per cent.

On the FTSE All-share Capital Pub Company soared by 12 per cent after Greene King announced plans to buy the company.

Later today investors will turn their attentions across the Atlantic as Apple, Bank of America Corp , Goldman Sachs Group and Yahoo! all report their earnings.

On the broader economic front data on June house sales in the country is due for release.

Meanwhile the gold price soared to a record $1,600 an ounce as investors continued to see the precious metal as a so-called safe haven investment as markets continue to be