Shares in British banks were up on the FTSE 100 in morning trading as investors appeared to be feeling optimistic about the start of the New Year.

Fears about the state of the sovereign debt in the eurozone appear to have been left, for now at least, in 2010.

By 10:05 shares in Lloyds Banking Group were up 3.09 per cent to 67.73 pence per share, RBS shares increased 4.15 per cent to 40.69 pence per share, Barclays shares rose 2.96 per cent to 269.40 pence per share and HSBC shares climbed 2.66 per cent to 668.40 pence per share.

Overall the FTSE 100 was up 1.92 per cent to 6,013.26.