Banks strong as Fed Prepares for Rate Hike
Banks helped to boost the FTSE 100, with better than expected new rules for the sector being unveiled last week, in anticipation of an expected interest rate hike from the US Federal Reserve. The UK’s leading index increased by 50 points on Monday, a gain of 0.7 percent, with lenders being among the top performers.
HSBC gained 2.1 percent, receiving a boost from the US Department of Justice, who lifted its deferred prosecution agreement relating to anti-money laundering controls. The lift means that the bank will not be facing the threat of more penalties in relation to its failure to prevent Mexican drug cartels from engaging in large scale money laundering.
Meanwhile, Standard Chartered gained 1.7 percent, and Barclays gained 1.3 percent. Miners also made some gains after China’s trade data beat forecasts. Rio Tinto, BHP Billiton and Glencore all made gains, as did the miners that are listed in the FTSE 250. China is one of the biggest consumers and also one of the biggest economies in the world.
Telecoms group TalkTalk Telecom, and Inmarset, were both hit by downbeat broker’s notes, and were the poorest performers of the day. TalkTalk fell by nine percent, while Inmarsat fell by 7.4 percent. Overall, however, the FTSE 100 is looking strong as we head into the middle of the month, and the possibility of a Santa Rally appears to be growing. Many analysts expect to see a bull market heading into the new year.
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