THE FTSE 100 Index climbed more than two per cent yesterday as better-than-expected first-quarter figures from JP Morgan Chase gave banks a boost.

Barclays led the sector’s rally sparked by JP Morgan’s update, which was released at lunchtime and revealed profits of $2.1bn.

The gains helped the FTSE 100 Index advance 84.6 points to close at 4053, despite the Dow Jones Industrial Average slipping into the red in early trade after further news on the economy.

Asian markets had also suffered a more lacklustre session following figures revealing that China’s economy grew at its slowest pace for at least ten years in the first quarter of this year.

In London, banks and insurers once more peppered the risers board.

Prudential was top of the league, up 31¼p at 394p, while Barclays lifted another eight per cent, extending back-to-back gains in recent sessions, up 15.2p to 212p.

Lloyds Banking Group followed with a rise of 5.6p to 89.7p.

Mining companies also played their part in London’s strong performance, with Kazakhmys ahead 30¼p at 517½p by the close.

Thomas Cook and TUI Travel joined banks and miners on the Footsie risers board after Credit Suisse increased its price targets on both firms.

Thomas Cook lifted 13p to 272p and TUI added 14½p to 269½p.

A gloomy trading update from Grolsch and Peroni maker SAB Miller put the blue-chip brewer into the red for much of the session, although it later clawed back lost ground.

The firm said lager volumes dropped one per cent in the three months to March 31 and were flat over the year as a whole.

SAB shares fell 8p at one stage, although it closed up 16p at 1079p.