LONDON (ShareCast) - London is playing catch-up with Wall Street after the US market advanced strongly yesterday while London traders enjoyed their Easter break. Strong gains among banks briefly pushed the FTSE through the 5700 barrier but the index has since come a little off the top.

HBOS enjoyed attention from investors, returning after the long Easter break in buying mood following last night’s improved bid for Bears Stearns from JP Morgan Chase.

News that directors had piled in also helped the bank, which is expected to hand the Financial Services Authority its own detailed account of last week’s unusual trading patterns in the bank’s shares to aid the regulator’s investigation into possible stock manipulation.

Barclays, RBS, Alliance & Leicester and Lloyds TSB are also sharply higher.

Meanwhile, a report showing sales of US homes rose a stronger than expected 2.9% last month helped UK peers improve. Taylor Wimpey and Persimmon are in demand.

Yellow Pages publisher Yell Group enjoys an impressive momentum change as the market decides that the recent fall has been overdone. The stock tops the list of Footsie gainers.

Few leading stocks fail to participate in the advance but defensive favourites BATs and Imperial Group are out of favour.

Investors have soured on convenience food group Uniq after it opted not to pay a final dividend as it expects a full recovery will now take longer due to the worsening economic environment.

Fund manager Liontrust has seen another dip in assets under management in the past three months, with results for the year showing a drop of more than 18% to under £4.5bn.

Half year losses have widened to £3m at Ceres Power due to increased investment spend, although the AIM listed fuel cell group believes it is well positioned going forward.

Oil drilling services provider and bid target Expro International reckons full year results will be at the top end of its expectations following continued strength in the second half.

HBOS is preparing to hand the Financial Services Authority its own detailed account of last week’s unusual trading patterns in the bank’s shares to aid the regulator’s investigation into possible stock manipulation, says the FT.

The premiers of both the UK and France are to demand that banks disclose all their bad debts, which could amount to a staggering $600bn (£302bn), five times the sum already written off since November, in a bid to bolster confidence in the floundering financial markets, writes the Independent.

Elsewhere, bulk shipping carrier Hellenic Carriers has secured new loan facilities with banks of up to $310m to fund the purchase of two vessels and provide cash for future growth.

Investment company LMS Capital has today admitted it is in talks regarding the sale of its Energy Cranes business.

The announcement was made in response to a report in the Sunday Times that LMS had slapped a £100m asking price on the Aberdeen-based supplier of offshore cranes to the energy industry.

Mobile software specialist Artilium today denied talk in the press that KPN Mobile International is to buy a minority equity stake in the company.

• News Channel