Shares in British banks were up on the FTSE 100 in morning trading on hopes that governments around the world may move to stimulate their economies further.

Yesterday the Bank of Japan reduced interest rates in a surprise move that was seen as an attempt to breathe new life into the struggling Japanese economy.

The move appeared to give investors that other governments would consider action to help their own economies.

By 10:20 shares in Lloyds Banking Group were up 1.19 per cent to 76.57 pence per share, RBS shares rose 1.16 per cent to 49.65 pence per share, Barclays shares increased 0.55 per cent to 310.50 pence per share and HSBC shares climbed 0.09 per cent to 666.10 pence per share.

Overall the FTSE 100 was up 0.98 per cent to 5,690.81.