FTSE closes higher but volatility continues

The FTSE 100 index closed higher today, ending a volatile session on the up as it struggled to continue a fightback from three…

The FTSE 100 index closed higher today, ending a volatile session on the up as it struggled to continue a fightback from three-year lows following the week's terror attacks on New York and Washington.

Tuesday's shock waves continued to pulse through the FTSE 100 giving the blue chip index a choppy ride in the last part of a session, which saw it swing in a 100-point range.

By the close it was 61.5 points up at 4,943.6, putting together a two-day rise of just under 200 points, after Tuesday's 288-point fall.

Banks were major contributors to the FTSE's advance, adding about 28 points as the oversold sector rebounded with Lloyds TSB up 4.4 per cent to 679p.

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British Airways lost 5.7 per cent, hovering around 10-year lows amid continuing concern about the effects of Tuesday's attacks on the airline business.

The IATA global airlines body said today airlines faced $10 billion in lost revenue and extra costs because of the US attacks.