Led by a 3.4 per cent move on the Hang Seng, the markets were also buoyed by the success of the £12.5billion HSBC rights issue.

HSBC shares reached a five week high yesterday morning after a stronger than expected demand for the rights issue, with traders buying a “staggering” 96.6 per cent of the shares offered.

The shares opened up 2.5 per cent higher on the London Stock Exchange as demand for more risk returned to the market, according to analysis from City Index.

“Appetite for shares and commodities has been high this morning as clients sold gold and bonds to pay for more exposure,” said Nick Serff, market strategist at City Index, yesterday. “Sentiment has become more positive with oil up over 1 percent, hovering just below the 54 dollar level.

“Price action would suggest additional gains over the coming week for index markets,” he added.

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