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.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.