FTSE: 6,009.92 (+101.16) Mid 250: 11,708.73 (+116.75) Small Cap: 3,249.88 (+27.38)EQUITIES STARTED the new month with a stellar performance, regaining the coveted 6,000 level as banking stocks welcomed clear ground ahead of them after the results of Ireland's stress tests.

With investors seeing little to fear from the results of the audit on Ireland’s banking system they bought heavily into the UK financial sector.

All of the FTSE 100’s high street banks made gains, with Barclays up 3.4 per cent at 287.05p, part-nationalised lender Royal Bank of Scotland rose 4 per cent to 42.42p. Lloyds Banking Group was 5 per cent stronger at 61p, HSBC, London’s biggest bank by market value, was 2.2 per cent higher at 655.1p and Standard Chartered, the London-listed bank focused on emerging Asian markets was up 2.3 per cent at £16.55.

“The stress test results revealed an additional €24 billion in recapitalisation needs. This was slightly higher than expectations, but not as bad as many had feared, and well below the €35 billion set aside in the EU-IMF financial assistance package,” said Frank Øland Hansen, senior economist at Danske Bank. “We actually think that this fifth recapitalisation of the banks could draw a line in the sand.”

With heavily weighted financial stocks dominating the top the leaderboard, London’s benchmark index was 101 points higher at 6,009.92, a rise of 1.7 per cent to its highest level since early March.

Insurance stocks were also widely bought. Admiral rose 3.7 per cent to £16.11, while Aviva added 3.1 per cent to 446.3p.

With hopes that the momentum in the banking sector could help breathe new life into the market’s faltering recovery rally, it was also given extra vigour from lingering demand for resource stocks. ENRC was 2.2 per cent higher at 957p.

BP rose 3.1 per cent to 468p, also lifted by upbeat analysis on the stock from JP Morgan, which said it was “under-priced”.

Sentiment was further enhanced by closely watched US jobs data, showing the second-consecutive month of significant job creation as 216,000 vacancies were filled outside the agricultural sector in March. This was stronger than the average forecast of 190,000 and follows the 194,000 jobs created in February.

Unemployment also fell from 8.9 per cent in February to 8.8 per cent in March. – Copyright The Financial Times Limited 2011