Banks higher despite FX probe

After a bout of selling at the open, a little recovery has crept in as the morning has progressed. The FTSE 100 is currently flat lining at 6796.

Barclays logo
Source: Bloomberg

Banking stocks across Europe are on the rebound this morning, with periphery names leading the way. In the UK it is worth keeping one eye on the financials, as reports have said the Financial Conduct Authority is moving towards settlements on the FX rigging probe. Barclays and RBS are the immediate names to watch here, with both names trading around 1% higher this morning.

Standard Chartered is also in the headlines and on the defensive, after having to publicly back management in the face of shareholder unrest. An unusual statement for such a big firm to make, and as a result it is sitting out the banking rally and trading down by 1%.

Geopolitical tensions are still front and centre, as Norwegian authorities announced they had intercepted intel regarding a planned terrorist attack.

Away from London, European markets are moving higher in spite of such tensions, and the euro is trying to peg back its recent losses with a retrace back towards $1.35.

US markets had another busy earnings day yesterday as Facebook touched new highs on the back of Q2 numbers and a continued increase in mobile ad revenue. Tech watchers will be hopeful Twitter can similarly show improvement in its ability to monetise the mobile space, with its numbers expected next Tuesday. Today’s highlights include Amazon and Visa on another hefty day of updates. 

After underperforming its more populated index peers yesterday (Boeing and Caterpillar were the laggards, the latter report today), we are currently calling the Dow Jones to open higher by 35 points at 17,120.

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