FTSE rebounds but banks feel pinch

Britain's FTSE 100 pushed higher this morning after an early 1

Britain's FTSE 100 pushed higher this morning after an early 1.2 per cent fall as investors warmed to strong results from insurer Aviva and medical devices firm Smith & Nephew.

But banks stayed weak after a hike in bad debt provisions at Barclays.

The banks took 14 points off the FTSE, as Barclays fell 3.4 per cent after it announced a 43 per cent rise in bad debt provisions to £713 million sterling, largely due to debt-laden Argentina's economic problems.

By 8.15 Irish time, however, the blue chip index was up 26.5 points to 4,272.7, squeezing back up from an initial low of 4,195 points.

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Aviva jumped 11 per cent after reporting operating profits at the upper end of analyst forecasts. The Aviva results buoyed other insurers, with Legal & General and Prudential up 1 and 2 per cent, respectively.

Smith & Nephew added 3.8 per cent after topping forcasts with a 13 per cent rise in first-half profits.