Banks climb as jitters around banking crisis ease
Fed meeting eyed, BoE in pipeline later this week
FTSE 100 up 1.3, FTSE 250 adds 1.5

March 21 Reuters London stocks rose more than 1 on Tuesday, led by gains in lenders after fears of a banking crisis appeared to ease, while the focus shifted to the U.S. Federal Reserve ahead of its ratesetting meeting.

The bluechip FTSE 100 rose 1.3, extending gains from Monday when it advanced nearly 1.

Fears of a global banking meltdown looked to ease after Swiss lender UBS agreed to buy its beleaguered rival Credit Suisse for 3.23 billion over the weekend.

Investors at this point in time feel comforted with how this mini banking crisis is being handled, said Craig Erlam, senior market analyst at Oanda.

British banks climbed 2.4 with the index on track for its best day in nearly three months.

Barclays was among the top gainers, rising 4.8.

Weakness in the pound also aided the exporterheavy FTSE 100.

Investor focus would now shift towards the U.S. Federal Reserve39;s upcoming interest rate decision as the twoday monetary policy meeting begins later today.

Recent turmoil in the banking sector sparked by the collapse of two regional U.S. banks coupled with troubles at European lender Credit Suisse prompted investors to sharply readjust their expectations around interest rate hikes.

The FTSE 100 has erased most of its early yearly gains, with the index now up only 0.5 on the year, due to the recent volatility.

Investors…