LONDON MARKETS: FTSE 100 Ends Higher As Bank Stocks Recover From Downbeat Start
05 Dezembro 2016 - 3:19PM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
Shares in RBS rise after bank settles with some litigants
U.K. stocks closed higher Monday, with bank shares shaking off
losses as investors assessed the fallout from the resignation of
Italy's prime minister following a referendum defeat over the
weekend.
The U.K's FTSE 100 closed up 0.2% at 6,746.83, recovering after
a downbeat start, when it opened 0.4% lower.
London-listed bank shares managed to swing higher, as investors
weighed up the prospects for banks across Europe after a referendum
in Italy raised fears about the integrity of the eurozone
(http://www.marketwatch.com/story/italian-stocks-slump-after-voters-reject-renzi-in-referendum-2016-12-05).
In the U.K., shares of the Royal Bank Of Scotland Group
(RBS.LN)(RBS.LN) gained 2.3%. The move came after the mainly
state-owned bank agreed to pay up to 800 million pounds
(http://www.marketwatch.com/story/rbs-settles-over-2008-shareholder-rights-issue-2016-12-05)
($1.02 billion) to settle with three litigants in a legal dispute
over shareholder rights. Barclays PLC (BCS) rose 1.8%, and Lloyds
Banking Group (LLOY.LN) (LLOY.LN) added 1.2%, but Standard
Chartered (STAN.LN) shed 0.3%.
Miners in focus: Meanwhile, miner Antofagasta PLC (ANTO.LN)
topped the benchmark as its shares added 4.9%, tracking a jump for
copper futures . Sector peers Rio Tinto PLC (RIO) (RIO) (RIO) and
Glencore PLC (GLEN.LN) were also among the strongest advancers, as
their shares moved up 1.6% and 4.4%, respectively.
But fellow miner Randgold Resources PLC (RRS.LN) lost 3.2%, as
gold prices pulled back.
Italian vote: In Italy, banks were recovering somewhat after an
initial fall, but remained under pressure after voters rejected a
proposal to reform the country's constitution
(http://www.marketwatch.com/story/italian-stocks-slump-after-voters-reject-renzi-in-referendum-2016-12-05).
Prime Minister Matteo Renzi -- who said changes needed to be made
to aid the economy and Italy's embattled banking sector --
announced he will resign from his post later Monday after the
decisive defeat.
"The rejection of reforms, even if imperfect, also sends a
message regarding the political tone in Europe ahead of further
elections in France and Germany next year," said Simon Smith, chief
economist at FxPro, in a note.
Read more:The other loser in Italy's vote -- its big banks
(http://www.marketwatch.com/story/the-other-loser-in-italys-vote-its-big-banks-2016-12-05)
Against the euro, sterling bought EUR1.1852, compared with
EUR1.1931 late Friday in New York.
Monday's docket: Activity in the U.K. services sector hit a
10-month high in November, according to a new purchasing managers'
index reading
(http://www.marketwatch.com/story/uk-services-pmi-rises-to-552-in-november-2016-12-05-104853749).
IHS Markit/CIPS said the services PMI for the month was 55.2,
compared with the 54.0 estimate generated in a FactSet survey of
analysts.
The pound pushed up as high as $1.2744 after the data, but
eventually pulled back to $1.2708. Sterling late Friday bought
$1.2712.
In London, the Supreme Court will hear the U.K. government's
appeal against a November ruling on invoking Article 50. A lower
court ruled that parliamentary approval is needed for the
government to trigger the article, which mark the formal start to
negotiations for the U.K. to leave the European Union. Prime
Minister Theresa May has said she wants to invoke Article 50 to
begin the negotiations by the end of March.
(END) Dow Jones Newswires
December 05, 2016 12:04 ET (17:04 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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