Banks help FTSE 100 pare losses due to weak commodity prices
Reuters
Published Oct 26, 2020 08:25
Updated Oct 26, 2020 11:00
By Devik Jain
(Reuters) - London's FTSE 100 pared early losses on Monday as a surge in banks following a report that the central bank was considering allowing dividend payments again helped offset losses in energy and mining stocks due to weak commodity prices.
Shares in Barclays (L:BARC), HSBC (L:HSBA) and Lloyds Banking (LON:LLOY) Group (L:LLOYL) rose about 0.5% after The Times newspaper reported the Bank of England (BoE) and commercial banks are "bartering" a deal to allow banks to make shareholder payouts.
Having declined as much as 1.3% in early trading, the FTSE 100 index (FTSE) was down 0.3%, while the domestically-focussed mid-cap FTSE 250 index (FTMC) lost 0.2% as travel and leisure (FTNMX5750) and industrial (FTNMX2720) stocks fell.
European markets were broadly weighed down by fears that a resurgence in coronavirus cases would hamper economic recovery as the government tightens restrictions on activity.
"There's fear that we get a long winter of restrictions across Europe that hobbles consumer demand and investor confidence," said Neil Wilson, chief market analyst for Markets.com.
After a stimulus-backed sharp rally from pandemic lows, the FTSE 100 has been trading in tight ranges since June due to Brexit-related uncertainty and concerns over coronavirus curbs.
AstraZeneca Plc (L:AZN) rose 1.0% after the drugmaker resumed the U.S. trial of its experimental COVID-19 vaccine and said the vaccine being developed by the University of Oxford produced a similar immune response in both older and younger adults.
The wider sectoral index (FTNMX4570) added 0.9%.
Educational publisher Pearson Plc (L:PSON) added 3.5% after UBS upgraded the stock to "buy" rating.
Coca-Cola (NYSE:KO) European Partners (CCEP) (L:CCEPC) surged 8.5% after the soft drink bottler made a buyout offer of $6.6 billion for its Australian peer Coca-Cola Amatil Ltd (AX:CCL).
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Written By: Reuters
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