Stock markets rally as Wall Street swoops to rescue First Republic Bank

Stock markets have risen after a group of US banking giants stepped in to rescue a smaller regional lender, which had been seen as at risk of failure.

Investors' worries over a crisis in the banking sector were eased after 11 US banks injected $30bn (£24.8bn) into First Republic.

Recent bank collapses in the US have raised fears over the health of the banking system.

The UK's FTSE 100 share index was up 1% in early trade.

Among the UK banks, shares in Lloyds and Barclays were up 1.3% higher.

Stock markets in France and Germany were up by about 0.6%, and earlier, Japan's Nikkei index had closed 1.2% higher.

The 11 US banks who announced the support said the action reflected their "confidence in the country's banking system".

US financial officials said the move was "most welcome, and demonstrates the resilience of the banking system".