Banks stormed ahead in trading today pulling the London market up to strong gains.

Investors also cheered as they awaited details of the multi-billion US package to revive the economy, helping the FTSE 100 Index closed up 100.8 points at 4295.2.

In the US markets were also up, with the Dow Jones Industrial Average rising 1.8% in early trading to around 8322, as investors looked to Wednesday’s expected vote by US politicians on an 825 billion dollar (£575 billion) stimulus bill.

The Footsie closed in negative territory on Tuesday night due to economic fears, but this was reversed today with the help of the banks.

Lloyds Banking Group shares jumped 50% or 33.8p to 100.9p today after Citi upgraded its rating on the new HBOS owner from hold to buy and said recent nationalisation fears looked to have been overdone.

Among other banks, Barclays gained for a third successive session, up 19% or 17p to 107p, after its open letter on Monday outlining its funding position calmed investor nerves. Royal Bank of Scotland rose 36%, or 5.6p to 21.3p and HSBC was 51.75p higher at 583p.

Meanwhile an update from Standard Life, in which the insurer described its capital strength as robust, caused shares in the Edinburgh-based firm to rise almost 8% or 16.25p to 223p.

That was despite UK life and pensions new business falling by a quarter to £2.38 billion in the final three months of 2008.

Legal & General, which will post figures tomorrow, rose 11% or 6.4p to 67.3p, while Aviva added 39.75p to 333p.

Property giant British Land added 9% after reports that it planned to sell a 50% share of Meadowhall in Sheffield for around £550 million. Shares rose 37.75p to 468.75p.

In other corporate news, BSkyB shares jumped 13% or 55.25p to 490p after it reported a 31% rise in half-year profits and said it continued to see strong growth in new customer figures.