FTSE Close: Burberry, Barclays up; Aggreko down

 

17.15 (close)

Dealers monitor their screens on the trading floor of IG Index in London

Friday feeling: There is little to spur markets on today.

Stocks resumed their rally today as traders were encouraged by positive economic data from the US and Europe.

The US Commerce Department reported a higher-than-expected rise in orders for manufactured goods, excluding the volatile transportation sector, while a surprise jump in business confidence in Germany also tempered worries about economic recovery.

The FTSE 100 Index received a late session boost and closed 51 points up at 5598, while Wall Street's Dow Industrial Average was ahead 1.5%.

Positive data from Germany also helped sentiment, with the Munich-based Ifo research institute reporting a rise in its business-sentiment index to 106.8 in September, defying expectations for a drop.

The positive data from the eurozone saw the pound drop against the euro to 1.17, while it was up against the dollar at 1.58.

UK banking stocks clawed back early losses after a Government inquiry confirmed it would look at the possibility of a break-up of the major high street players.

The Independent Commission on Banking said it would look at separating retail and investment banking operations and added it was also considering ways to improve high street competition, which could see the largest banks forced to offload assets.

HSBC was also in the spotlight as reports said chief executive Michael Geoghegan will quit by the end of the year under a shake-up that is expected to see finance director Douglas Flint succeed outgoing chairman Stephen Green.

Earlier this week, HSBC dismissed speculation that Hong Kong-based Mr Geoghegan had threatened to resign unless he was promoted to chairman as "nonsense" and "offensive". But reports overnight suggested an announcement over his departure could be made as early as next week.

HSBC was 2.3p higher at 666.3p, despite the rumours over its boardroom plans.

Elsewhere in the sector, Barclays rose 5.5p to 311.75p, part-nationalised Lloyds Banking Group dropped 1.5p to 76.6p and Royal Bank of Scotland also recovered from a weak start to stand 1.3p higher at 49.3p.

ARM Holdings was the Footsie's best-performing blue-chip on renewed bid speculation surrounding the chipmaker.

American software firm Oracle was rumoured to be the most likely candidate for takeover, following comments from the US giant's chief executive that he was keen on new acquisitions and ARM was a potential target. Shares jumped 23.8p to 414.6p.

Shares in fashion firm Burberry gained to reach a new high, with traders citing market talk of bid interest from a US private equity firm. Shares closed 56.5p up at 1002p.

In another quiet session for corporate news, oil and gas explorer Dana Petroleum's days on the stock market looked to be over after South Korea's national oil company came closer to gaining control in a £1.87bn takeover.

Korea National Oil Corporation said its hostile bid for Aberdeen-based Dana had won support from 64.3% of Dana's shareholders, leaving it on the brink of being able to delist the firm. Dana shares rose 4p to 1797p, just below the 1800p a share offer price.

The Footsie's biggest risers were ARM Holdings, up 23.8p at 414.6p, Burberry Group, ahead 56.5p at 1002p, Hammerson, up 17.1p at 406.2p and Standard Chartered, ahead 67.5p at 1929p.

The Footsie's biggest fallers were Antofagasta, down 30p at 1181p, Randgold Resources, off 75p at 6485p, National Grid, down 5.5p at 543p, and Aggreko, off 11p at 1534p.

14.35: Relief from across the pond. The Dow has opened higher today.

The Dow Jones Industrial Average rose 124.69 points to 10,789.11 in early trading on Wall Street.

That perhaps helps to explain why, in London, the FTSE 100 has seen a stunning turnaround. Some 71 of the 100 blue chip firms are now in positive territory.

13.10:

Following the confirmation of the Independent Commission on Banking, banks have suffered today.

Barclays fell 2.8p to 303.4p and part-nationalised Lloyds Banking Group dropped 0.5p to 74.6p but Royal Bank of Scotland recovered from a weak start to stand 0.4p higher at 48.4p.

HSBC was 1.1p lower to 662.9p as rumours swirled over its boardroom plans.

In another quiet session for corporate news, oil and gas explorer Dana Petroleum's days on the stock market looked to be over after South Korea's national oil company claimed control in a £1.87bn takeover.

Korea National Oil Corporation said its hostile bid for Aberdeen-based Dana had won support from 64.3% of Dana's shareholders, leaving it on the brink of being able to delist the firm. Dana shares rose 4p to 1797p, just below the 1800p a share offer price.

Fellow oil explorers Tullow Oil and Cairn Energy also moved forward, adding 16p at 1281p and 6.9p at 454.3p respectively.

Overall, the FTSE 100 is 44.62 points lower at 5507.29.

12.10 Dana Petroleum shares are up 4p to 1,797p as it was announced the UK oil and gas explorer has been bought by Korea's national oil company.

The FTSE 100 is down 20.1 points to 5,526.9.

10.45:

On the currency markets, the pound this mornign was worth $1.5693 compared to $1.5719 at the previous close.

Against the euro, the pound was worth €1.1726 compared to €1.1779 at the previous close.

In equities, the FTSE 100 is 44.62 points lower at 5507.29.

We've also got more on the Government's Independent Commission on Banking, which it was today confirmed would consider whether banks needed to be broken up.

09.45:

The FTSE 100 headed lower today with banks under pressure after an inquiry was confirmed that will look at breaking them up, while miners fell after poor US jobs data.

HSBC was also in the spotlight as reports suggested chief executive Michael Geoghegan would quit by the end of the year under a shake-up that will also see Douglas Flint succeed the outgoing chairman Stephen Green.

The wider Footsie fell into the red - down 24.5 points to 5522.6 - as mining stocks fell after worrying US jobless data sparked concerns over the strength of recovery in the world's biggest economy.

A mixed session in Asia followed falls overnight on America's Dow Jones Industrial Average after data yesterday showed US unemployment benefit claims jumped by 12,000 last week.

Amid fears over global demand, London blue-chip miners such as Kazakhmys and Antofagasta saw falls, down 51p to 1377p and 39p to 1172 respectively.

But banks were in sharp focus amid the HSBC speculation and after the Independent Commission on Banking (IBC) revealed the agenda for its probe into banking reforms.

It confirmed it would look at separating retail and investment banking operations and added it was also considering ways to improve high street competition, which could see the largest banks forced to offload assets.

Barclays fell 3.5p to 302.8p, while part-nationalised Lloyds Banking Group dropped 0.6p to 74.5p and Royal Bank of Scotland shed 0.4p to 47.6p.

HSBC was 0.1p lower to 663.9p as rumours swirled over its boardroom plans.