Banks help FTSE 100 pare losses due to weak commodity prices

© Reuters. FILE PHOTO: Pedestrians leave and enter the London Stock Exchange in London

By Devik Jain

(Reuters) – London’s FTSE 100 pared early losses on Monday as a surge in banks following a report that the central bank was considering allowing dividend payments again helped offset losses in energy and mining stocks due to weak commodity prices.

Shares in Barclays (L:), HSBC (L:) and Lloyds Banking (LON:) Group (L:) rose about 0.5% after The Times newspaper reported the Bank of England (BoE) and commercial banks are “bartering” a deal to allow banks to make shareholder payouts.

Having declined as much as 1.3% in early trading, the FTSE 100 index () was down 0.3%, while the domestically-focussed mid-cap FTSE 250 index () lost 0.2% as travel and leisure () and industrial () stocks fell.

European markets were broadly weighed down by fears that a resurgence in coronavirus cases would hamper economic recovery as the government tightens restrictions on activity.

“There’s fear that we get a long winter of restrictions across Europe that hobbles consumer demand and investor confidence,” said Neil Wilson, chief market analyst for

After a stimulus-backed sharp rally from pandemic lows, the FTSE 100 has been trading in tight ranges since June due to Brexit-related uncertainty and concerns over coronavirus curbs.

AstraZeneca Plc (L:) rose 1.0% after the drugmaker resumed the U.S. trial of its experimental COVID-19 vaccine and said the vaccine being developed by the University of Oxford produced a similar immune response in both older and younger adults.

The wider sectoral index () added 0.9%.

READ  Fed's commitment to act upstaged by Trump's furor

Educational publisher Pearson Plc (L:) added 3.5% after UBS upgraded the stock to “buy” rating.

Coca-Cola (NYSE:) European Partners (CCEP) (L:) surged 8.5% after the soft drink bottler made a buyout offer of $6.6 billion for its Australian peer Coca-Cola Amatil Ltd (AX:).

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Please enter your comment!
Please enter your name here