UK stocks have started the week on an even keel with the FTSE 100 and FTSE 250 drifting between small gains and losses. Volumes are little thin since North American bond traders are off for Columbus Day in the United States and Thanks Giving in Canada.
It would be the fourth day running that the FTSE 100 fails to build on its fresh record high, but for now, the UK benchmark remains comfortably above the 7000 mark.
UK-listed firms with large foreign earnings continue to benefit from weakness in the British pound. A rebound in the price of gold is sending gold-miner Randgold (LON:RRS) to the top of the FTSE.
Banks are in the spotlight again, but for all the wrong reasons.
Deutsche Bank (DE:DBKGn) shares are down over 3% after chief executive John Cryan coming away empty handed from his meetings with Department Justice over his bank’s potential $14bn fine. It was always going to be a tall order to come away with a deal that quickly, especially when the focus was with the World Bank and IMF.
Shares Royal Bank of Scotland (LON:RBS), Lloyds (LON:LLOY) and Barclays (LON:BARC) are propping up the FTSE 100 with declines in excess of 2%. Leaked documents from RBS appear to confirm accusations made three years ago that the bank deliberately “squeezed” struggling businesses to benefit from selling off the assets when they failed. It’s another egg-on-face moment for a bank that has struggled to brush off the band image and poor decision-making that led to a taxpayer bailout.
Stocks in the US look like a robust start after another fascinating presidential debate left markets’ favourite Hillary Clinton with a firm lead in the polls. Donald Trump was more measured in the debate but the damage had already been done after his “lewd comments” video was leaked two days earlier. Today will be the last chance for investors to position themselves before Alcoa (NYSE:AA) kicks off Q3 earnings season on Tuesday.
USA pre-opening levels
S&P 500: 4 points higher at 2,157
Dow Jones: 37 points higher at 18,277
Nasdaq 100: 8 points higher at 4,872
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