A resilient performance from the scandal-hit banking sector and better-than-expected retail sales figures helped the FTSE 100 Index hold firm today.
London’s leading shares index rose 1.5 points to 5,834.5 as banking shares shrugged off fears of further Libor-rigging fines after US authorities summoned three of the UK’s biggest lenders for questioning.
HSBC, Royal Bank of Scotland and Barclays were among seven banks to be handed legal notices demanding that they assist in an inquiry by the attorneys general of New York and Connecticut.
But with a Standard and Poor’s report confirming a “stable” outlook on most UK banks, Barclays was up 3.1p at 186.2p, Royal Bank of Scotland was ahead 5.7p at 227.3p and HSBC rose 2.6p to 564.8p.
Lloyds Banking Group, which has not received a legal notice, was one of the biggest top flight risers, ahead 3%, or 1p at 33p.
Retailers were boosted by a surprise 0.3% rise in retail sales volumes between June and July, defying expectations of a slight fall.
Tesco and Marks & Spencer were among the biggest risers, up 5.7p at 338.3p and 5.7p to 360p respectively.
Mining stocks also made gains following dovish comments from China indicating there was room for interest rates to fall further.
Kazakhmys rose 20p to 735p and Evraz was ahead 7.2p at 269.6p.
The biggest Footsie risers also included IMI, up 34p at 918.5p.
Among the biggest Footsie fallers were Pennon down 14.5p at 749.5p, Eurasian Natural Resources off 7.2p at 372.4p, Vodafone down 3.2p at 185.6p and Admiral off 20p at £11.62.
Alan MacPhee, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted Weir Group rose 1.64% at £17.38 and FirstGroup added 0.78% at 244.85p.
Laggards included Melrose Resouces, which shed 1.99% at 135.125p, and Faroe Petroleum which lost 0.66% at 151.375p.