BT leads FTSE 100 higher

The FTSE 100 rose 0.11 per cent in early trading to 4,466.68 by 08:45 BST, led by a 5.16 per cent surge in BT Group's share price.

BT shares benefited from Bank of America's upgrade to 'buy' from 'neutral,' citing better cost control at the telecoms firm.

Banks were among the highest risers on the blue-chip index. Royal Bank of Scotland was up 4.28 per cent, while Lloyds Banking Group rose by 2.4 per cent.

Pharmaceuticals were also supporting the index, with AstraZeneca up by 3.3 per cent and GlaxoSmithKline up by 2.46 per cent.

But mining shares were weighing on the index. Vedanta fell 4.69 per cent, while Antofagasta was down by 1.56 per cent.

Barclays, which has announced the sale of its fund management unit to BlackRock, also fell, by 1.72 per cent.

Overnight, US markets rose slightly. The Dow Jones was up by 0.37 per cent, while the S&P 500 was up by 0.61 per cent.