FTSE up as Barclays shares soar
Jul 03 2012
Barclays shares rose 3% on Monday as chairman Marcus Agius's decision to step down in the wake of the rate-rigging scandal was backed by investors.
The wider FTSE 100 Index rose 69.5 points or 1.2% to 5640.6, its highest close for nearly two months, with banking shares among the biggest risers.
Barclays' shares rose 5.6p to 168.4p after Mr Agius announced his departure, with analysts advising shareholders to snap up the stock following heavy falls last week.
David Jones, chief market strategist at IG Index, said Mr Agius's resignation was "a step in the right direction".
The improved sentiment was driven by last week's agreement in Brussels, which will allow struggling banks to take financial aid directly from the EU without the debt adding to governments' debt mountains and driving up their borrowing costs.
Lloyds Banking Group was ahead 0.4p at 31.5p, Royal Bank of Scotland rose 3.7p to 219p and HSBC advanced 9p to 570.1p.
The improved sentiment came despite figures revealing that eurozone unemployment hit another record in May as the financial crisis pushed the continent toward the brink of recession. The Dax in Germany and the Cac40 in France were both up more than 1%.
But the Dow Jones Industrial Average in the US was down 0.5% as the London market closed, after data showed the manufacturing sector shrank in June for the first time in nearly two years, fuelling fears of a slowdown in the world's biggest economy.
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