FTSE 100 jumps 0.5% as Barclays 'passes stress test'
FTSE 100 jumps 0.5% as Barclays 'passes stress test'
Friday 27th March 2009
The FTSE 100 rose 0.5 per cent this morning as Barclays looks set to pass a stress test on its capital position.At 9:01 GMT the index was up 0.50 per cent to 3,944.97 – a rise of 19.77 points.
Barclays saw the largest gains – up 8.92 per cent to 152.60p – after reports that the Financial Services Authority (FSA) is set to announce the bank does not need to raise further capital to prop up its balance sheet.
The decision would mean Barclays would not have to launch a rights issue to raise extra funds – after already gaining some £7 billion backing from the Middle East investors last year.
The next major hurdle for Barclays next week would be over whether to take part in the Treasury's Asset Protection Scheme and not hand over a stake to the government to cover the cost of the insurance for toxic assets.
The deadline for the Asset Protection Scheme is Tuesday next week and Barclays is already in talks for the £4.5 billion sale of its fund management arm, iShares, which could be used to cover the cost of the insurance.
Elsewhere on the FTSE 100 Lloyds Banking was up 6.38 per cent, while Balfour Beatty gained 4.48 per cent.
Prudential was down 2.31 per cent, Imperial Tobacco fell 2.14 per cent and TUI Travel was down 1.96 per cent.
Last night in New York, the Dow Jones was up 2.25 per cent, while Chicago's S&P 500 rise 2.33 per cent.
Related News
Third of Britons overspending despite recession - 27/03/09
Almost a third of Brits are overspending and run the risk of falling into debt, new research shows
Almost a third of Brits are overspending and run the risk of falling into debt, new research shows
ISA limit 'could rise to £10,000' - 27/03/09
Alistair Darling could increase the amount that can be saved in an ISA to £10,000 in next month's Budget
Alistair Darling could increase the amount that can be saved in an ISA to £10,000 in next month's Budget
Councils 'failed to heed warnings' over Iceland savings - 26/03/09
Local councils failed to heed warnings over the safety of £954 million of deposits invested in Icelandic banks
Local councils failed to heed warnings over the safety of £954 million of deposits invested in Icelandic banks
FTSE 100 up 0.6% - 26/03/09
The FTSE 100 saw a relatively flat day today, but traders saw no time for breath after earlier turbulence in the week
The FTSE 100 saw a relatively flat day today, but traders saw no time for breath after earlier turbulence in the week
News Article Search
Quick Apply
News Archive