FTSE 100 holds on to gains amid US concerns

Modest banking gains helped set London’s FTSE 100 on the front foot as investors prepare for a busy week of UK economics figures.

The blue-chip index closed in the green after an early-afternoon dip amid remarks from banking giant Goldman Sachs, estimating the US will run out of cash in three weeks unless it solves its banking crisis.

The comments come ahead of a meeting between President Joe Biden and Republican politician Kevin Mccarthy yesterday to discuss increasing the government’s spending limit, known as its debt ceiling.

Meanwhile, the UK’S Office for National Statistics (ONS) will be releasing the latest public sector finances figures today, showing how much the UK Government borrowed in April.

Borrowing has shot up in recent months as the government spent billions on supporting households and businesses with energy costs.

The ONS is also set to reveal the latest UK inflation figures tomorrow, an important indication of how well the Bank of England is meeting its remit to bring down inflation to the 2% target.

The FTSE 100, which is internationally focused and impacted by news in the US, gained 14.12 points, or 0.18%, to 7,770.99.

The pound was down 0.15% against the US dollar to $1.243 and down 0.1% against the euro to 1.15.

The biggest risers on the FTSE 100 were Standard Chartered, up 19.2p to 653.2p, Admiral Group, up 57p to 2,306p, Ocado, up 9.4p to 403.4p, and BT, up 2.9p to 147.85p.

The biggest fallers were Frasers, down 17.0p to 748.5p, Convatec, down 4p to 222.2p, and Vodafone, down 1.4p to 81.65p.