The London Stock Exchange building is seen in central London
The London Stock Exchange building is seen in central London September 24, 2009. REUTERS

Shares in British banks were soaring on the FTSE 100 in morning trading after a dismal performance last week was eradicated by U.S. company news and the IMF.

Last week saw the FTSE 100 drop below the 5,000 mark for the second time this year, after poorer than expected data from China suggested a weaker than hoped for global economic recovery.

Shares were helped today however after financial company State Street Corp in the U.S. published a bullish forecast for the year, giving investors hope that companies would be announcing positive results in the near future.

The IMF also helped to dispel fears of a weak global economic recovery by upgrading its global growth forecast for 2010, thanks to strong growth in Asia and stronger private demand in the U.S.

By 08:42 shares in Lloyds Banking Group were up 4.00 per cent to 60.52 pence per share, RBS shares increased 3.68 per cent to 44.41 pence per share, Barclays shares rose 3.58 per cent to 302.05 pence per share while HSBC shares climbed 0.52 per cent to 617.90 pence per share.

Overall the FTSE 100 was up 1.37 per cent to 5,083.36.