Shares in British banks were up on the FTSE 100 in morning trading as investors appeared to be more confident about the state of the global economic recovery.

This week it emerged that private sector employment in the U.S.A. rose by 187,000 from December to January, considerably more than the 150,000 increase expected.

By 09:55 shares in Lloyds Banking Group were up 0.18 per cent to 63.11 pence per share, RBS shares increased 0.69 per cent to 43.78 pence per share, Barclays shares rose 2.51 per cent to 308.45 pence per share and HSBC shares climbed 0.08 per cent to 708.50 pence per share.

Overall the FTSE 100 increased 0.45 per cent to 6,010.12 pence per share.