Banks drag on FTSE 100 after Barclays share slump
London’s top flight moved 0.2%, or 14.87 points, higher to finish at 7,389.7.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The FTSE 100 finished higher on Tuesday, but underperformed compared to the rest of Europe’s top financial indexes as a weak showing by Barclays weighed on banking stocks.
Barclays was among the day’s poorest performers on the index after the banking group reported lower earnings and cut its profitability forecasts.
It reported a pre-tax profit of £1.9 billion for the three months to September, slightly below last year’s £2 billion profit.
Shares in the company fell by 9.4p to 134.64p as a result. NatWest and Lloyds shares were also lower amid a key reporting week for the sector.
Nevertheless, commodity firms had a strong session as easing bond yields helped keep the FTSE in positive territory.
London’s top flight moved 0.2%, or 14.87 points, higher to finish at 7,389.7.
Across the Channel, the Dax index was 0.54% higher for the day and the Cac 40 closed up 0.63%.
Chris Beauchamp, chief market analyst at IG, said equities were in “bullish mode” globally during the afternoon ahead of updates from a number of big tech firms.
“We are now firmly into the strong Q4 seasonal period for stocks, providing bulls with their best hope for a sustained rally in months,” he added.
“An easing of yields will aid this outlook too, and notably it is yield stocks that are leading the way higher in London this afternoon.”
Stateside, US markets increased after the opening bell in anticipation of quarterly updates from Google owner Alphabet and Microsoft.
Meanwhile, sterling came under pressure against the dollar after another fall in business activity was revealed by October’s flash PMI industry figures.
The pound was down O.7% at 1.216 US dollars and was 0.07% higher at 1.148 euros at market close in London.
In company news, sofa seller ScS saw its shares rocket after it agreed a takeover by an Italian furniture retailer.
Italy’s Poltronesofa said it will pay 280p a share, including a 10p dividend, valuing ScS at £99.4 million and marking a 66% premium on Monday’s closing price.
Shares in the business moved 102p higher to 271p at the end of Tuesday trading.
Fintech firm CAB Payments saw shares plummet by almost three-quarters following a profit warning, just months after floating on the London Stock Exchange.
Shares tumbled by 155.7p to 60.8p after the payments transfer business slashed its sales forecasts due to a particularly sharp slowdown in West Africa.
Hipgnosis dipped in value after said would-be bidders for its proposed music catalogue sale were not willing to match the price of an original 440 million US dollar (£360 million) offer.
The music rights investment firm saw its shares slip by 2.1p to 73.3p as a result.
The price of oil slipped back slightly for a second consecutive session after they were buoyed by tensions in the Middle East.
A barrel of Brent crude fell by 2.07% to 87.97 US dollars (£72.33) as markets were closing in London.
The biggest risers on the FTSE 100 were Rio Tinto, up 169.5p to 5,060p, AstraZeneca, up 338p to 10,438p, United Utilities, up 26p to 1,038p, Airtel Africa, up 2.7p to 114.7p, and Antofagasta, up 31p to 1,328p.
The biggest fallers on the FTSE 100 were Experian, down 276p to 2,411p, Barclays, down 9.4p to 134.64p, Bunzl, down 115p to 2,799p, NatWest Group, down 7.5p to 207.8p, and St James’s Place, down 19.2p to 617.6p.