FX.co ★ FTSE 100 Little Changed at Record Levels

The FTSE 100 index remained close to its record high of approximately 9,650 on Monday; however, it trailed behind other leading European indices due to a significant decline in precious metals impacting market performance. Notably, Fresnillo and Endeavour performed poorly, each experiencing losses exceeding 5% as gold prices fell below $4,000 per ounce. Additionally, utility stocks faced challenges in a risk-on environment, with National Grid dipping by 0.2% and SSE declining by 1.3%. HSBC also saw a slight decrease after allocating a $1.1 billion provision to address litigation related to investor losses tied to Bernard Madoff’s Ponzi scheme, which is expected to impact its third-quarter results. Conversely, banking stocks fared well, with Standard Chartered growing by over 3%, and Lloyds, NatWest, and Barclays advancing by more than 1.5%. Analysts from JPMorgan pointed to robust fundamentals and consolidation opportunities within the sector, identifying NatWest and Barclays as favorable choices and acknowledging Lloyds’ potential for re-evaluation, even with possible tax increases anticipated in the upcoming autumn budget.