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FTSE PEAKS AT 2-YEAR HIGH

Firmer banks and mining stocks lifted Britain's top share index to its highest in more than two years on Thursday as a move by the U.S. Federal Reserve to buy assets boosted investor confidence in equities.

By 0906 GMT the FTSE 100 was up 101.94 points or 1.8 percent at 5,850.91, reaching its highest since June 2008 after it closed 0.2 percent lower on Wednesday.

Financial stocks were among the strongest gainers. Man Group was the star performer, up 7.2 percent after the world's largest listed hedge fund firm said client assets rose to $40.5 billion at end-September after eight months of outflows.

Banks provided much of the index's strength, with HSBC and Lloyds Banking Group adding 4 and 1.9 percent respectively.

The Fed launched a fresh effort to support the U.S. economic recovery, committing to buy $600 billion in government bonds which lifted riskier assets around the world despite concerns the programme could do more harm than good.

The dollar index fell to an 11-month low, helping lift the price of metal and crude which supported mining and energy stocks.

"The quantitative easing by the Fed is going to give investors a short-term boost as people are seeing that central banks are going to do whatever it takes to support the economy," said Michael Hewson, markets analyst at CMC Markets.