Banking shares drive market surge

SATURDAY 1 NOVEMBER 2014 BANK stocks led a surge for the FTSE 100 yesterday after new standards on financial health from the Bank of England were met with relief by lenders.

Their progress came during a positive session for global markets after the Bank of Japan announced surprise stimulus measures to boost the country’s economic recovery.

Japan’s Nikkei stock index closed almost 5 per cent higher, while the FTSE 100 was 1.3 per cent stronger, up 82.92 points at 6,546.47, after the Dow set a new intra-day high trading hours.

Tony Cross, market analyst, Trustnet Direct, said: “There’s been little in play to frighten London equity traders, with the vast majority of blue chips stocks higher at the close.”

Banks dominated the

during

London

ris- ers’ board as policymakers said lenders will be required to hold more capital to guard against the risks of bad loans from 2019, but the proposals were seen as being at the lower end of expectations.

Royal Bank of Scotland rose 22.7p higher at 388p – up 6.2 per cent – and Barclays shares rose 8 per cent – up 18.25p to 240.8p. Lloyds Banking Group lifted 1.96p to 77.1p and HSBC was 10.4p higher at 639.5p.

Shares in Direct Line Insur- ance were 2 per cent lower after the motor and home policies specialist said its markets remain highly competitive.

The company remains on track to meet its financial targets for 2014 but a decline of 5.5p to 276p made the stock one of a small number of fallers in the FTSE 100.

The biggest risers in the top flight included wealth manager St James’s Place, up 32.5p at 745p, while the biggest fallers on the Footsie was Randgold Resources down 101p at 3,678p. NEW YORK: On Wall Street, the Dow and S&P 500 ended at record highs last night after the Bank of Japan’s surprise move to ramp up its stimulus programme.

The Dow Jones industrial average rose 191.95 points, or 1.12 per cent, to close at 17,387.37 while the broader Standard & Poor’s 500 index gained 23.03 points, or 1.15 per cent, finishing on 2,017.68. The Nasdaq Composite added 64.60 points, or 1.41 per cent, to 4,630.74, its highest close since March 2000.