- 27 updates
The FTSE 100 Index has closed 11.8 points higher at 5478.8 after reports that the US Federal Reserve, Bank of Japan and Bank of England were drawing up plans to cushion the blow of a Greek default.
The London market kept its head above water on hopes that central banks globally are ready to act if this weekend's election in Greece ultimately leads to the debt-laden country leaving the euro.
The pound was up against the euro at 1.23 as the single currency weakened ahead of Sunday's Greek poll, while sterling was also ahead against the US dollar at 1.56.
Nigel Stockton, the Financial Services Director at Countrywide estate agency, has said that he "will only start putting the bunting back out" when he sees how the credit being offered to British banks is deployed.
He said: "The market needs specific mortgage lending targets and increased gross lending targets. Without these targets, there is a real danger that this money will again be used by the banks for balance sheet management and not to increase mortgage lending."
The Chancellor George Osborne has said whilst the UK has some way to go before it is out of recession, the measures he announced last night will have a direct impact on households and businesses:
The City A.M. editor Alistair Heath has said that the measures to get banks lending may encourage them to take greater risks, of the type that led to the sub-prime mortgage crisis in the United States. He told the BBC's World At One:
Paul Smee, the head of the Council of Mortgage Lenders, has told ITV News that the Government's new lending measures for banks are "broadly to be welcomed". He said:
Pierre Williams, a spokesman for the Federation of Small Businesses, says that whilst a majority of small businesses want to borrow money many are rejected by banks' lending criteria.
He told ITV News it is vital that the Government ensures any money lent to banks ends up with businesses and not as bankers' bonuses.
The head of the Federation for Small Businesses has released this statement is response to the Government's announcement of new lending measures for banks:
Latest ITV News reports
Banks are "willing" to get behind a £80 billion new funding scheme but experts warn there is no guarantee it will kick-start lending.
Despite the plans to inject an estimated £80 billion to get banks lending again, it is back to square one for home buyers, at best.