Banks are dragging the FTSE 100 down this morning, as Barclays has declared bad debts will damage pr...
Banks are dragging the FTSE 100 down this morning, as Barclays has declared bad debts will damage profits and more money needs to be set aside for those loans.
The FTSE 100 lost 43.5points or 1.1% to 4110.8 by mid-morning trading as Barclays and rivals, including Royal Bank of Scotland, posted five of the index's six biggest point losses.
Barclays fell 33.5p or 7.4% to 418.5p while Royal Bank of Scotland Group lost 55p or 3.4% to 1,575p, HBOS dropped 15.5p or 2.2% to 692p and Lloyds TSB Group fell 11p or 2% to 534p.
East Surrey Holdings is one of the few that has managed to rise, gaining 13p or 4.8% to 281.5p. The water and gas company serving southeast England said its fiscal first-half profit more than doubled on gas sales in Ireland and after it sold units.
Rentokil Initial also rose 4p or 1.9% to 217.5p. The pest-control company said profit before tax rose 9.5% over the first 10 months of the year, because the firm was able to outsource many of its hygiene and security services.
And Sage Group, the accounting software firm, dropped 10.5p or 6.4% to 152.5p as its full-year fiscal profit rose 6% thanks to further sales with existing customers. Analysts took this as a negative because many had expected an 11% rise.
Positive news emerged in after-hours US trading yesterday which helped to boost the Asian markets today and ignite confidence in technology-related stocks.
Taiwan's TWSE Index rallied to a two-week high as Taiwan Semiconductor and Tokyo Electron gained on the back of strong sales and profits news from Texas Instruments.
The TWSE added 2.4 % to 4793.93 while Japan's Nikkei 225 Stock Average added 0.3% and South Korea's Kospi index climbed 0.9% led by Samsung Electronics.
Indices in Hong Kong, China, Indonesia and Thailand rose, while benchmarks in Singapore, Australia, Malaysia, New Zealand, the Philippines and India fell.
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