FTSE: 5,713.82 (+160.58) Mid-250: 10,733.34 (+310.96) Small Cap: 2,884.70 (+61.10)LONDON'S FINANCIAL and resource stocks soared yesterday, bringing much sought relief to a market that has traded sideways all week, after EU leaders finally came up with plans to address the euro zone debt crisis.

Barclays jumped 17.6 per cent to 210p, Royal Bank of Scotland climbed 10.1 per cent to 27.28p and Lloyds Banking added 8.2 per cent to 37.07p.

Among the miners and resource groups, some of the hardest hit stocks during a weak third quarter for equity markets, Xstrata soared 10.8 per cent to £11.11 and Glencore International gained 9.9 per cent to 444p.

Overall, the FTSE 100 gained 161 points, a rise of 2.9 per cent to 5,713.82, its first close above the 5,700 mark since early August when it was on its way sharply lower.

News that private investors will take a 50 per cent cut in the face value of their bonds – a significant reduction, or haircut, that should reduce Greek debt levels to 120 per cent of gross domestic product by the end of the decade – was met with relief.

Plans to increase the value of the European financial stability facility to the €1,000 billion investors had been looking for also met expectations, which were tested by the uncertainty of days of talks.

“On the surface there seems to be a great deal of support for the news but some are suggesting the detail is still lacking,” Stan Shamu, market analyst at IG Markets, said.

“That said, European equity markets are currently eyeing bumper gains . . . but the question is whether these can be sustained in the longer term as the market keeps pushing back to levels not seen since the early August sell-off. Interpretation of the news – and any information regarding further instalments – will doubtless be front of mind for the majority [of traders].”

Burberry, the UK’s largest luxury goods maker, gained 6.7 per cent to 1,390p after PPR said it sees no sign of a slowdown in demand for luxuries.

There were gains for oil major Royal Dutch Shell after it reported third-quarter profits of $7.2 billion, more than double the level they were at a year ago, with the rise fuelled by strong oil prices.

The stock edged 0.5 per cent higher to £23.29. – (Copyright The Financial Times Limited 2011/ Bloomberg)