In afternoon trading the FTSE is sitting around 22 points up on the day at 6035, following strong gains in the mining and banking sectors.

European markets can breathe a little easier this afternoon, after a successful bond auction in Portugal earlier today raised a total of €1.249 billion through the sale of four- and ten-year bonds. A Portuguese bail-out has been considered something of an inevitability for some time, but today’s strong showing may ease such fears for now. Banks enjoyed a good day on the back of the auction, with HSBC (+3.50%), Barclays (+2.71%) and Lloyds (+1.86%) among the FTSE’s biggest climbers. Miners also enjoyed a day of gains as metal prices advanced; Vedanta Resources added 101p (+4.19%) to its share price, while Eurasian (+3.34%), Kazakhmys (+3.29%) and Antofagasta (+2.94%) also made moves towards  the top of the heap.

US stocks advanced at the open, as banks came to the fore on speculation that the successful auction in Portugal will improve the overall economic situation in Europe. Both Spain and Italy are scheduled to sell debt later in the week, and if both go as well as is expected it could provide a strong – and welcome – boost for investor confidence. However, despite the quiet confidence that seems to have settled among markets throughout today, the European recovery is in its infancy yet, and it remains to be seen whether this morning’s positivity is the start of a genuine turnaround in Europe.