FTSE 100 Steadies Ahead of Federal Reserve Stress Test Results

After reaching its highest level for four months on Tuesday, the FTSE 100 index struggled to make any further headway as a number of companies went ex-dividend and rumours circulated regarding the results of the so-called "stress tests" performed by the U.S. Federal Reserve on major financial institutions due to be published on Thursday. The Bank of America, for example, is believed to require £34 billion in fresh capital.

Michael Parker
shareprices.com - Wednesday, May 06, 2009

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Share prices in the U.K. banking sector reflected the uncertainty with Barclays down 1.8% at 292.8p and Lloyds Banking Group down 0.5% at 120½p but Royal Bank of Scotland up 0.8% and HSBC up 0.7% at 48.4p and 521p respectively.

Fashion retailer Next reported better than expected results for the first quarter of 2009, and added £15 million to its first half profit forecast as a result. Next was keen to point out that a late Easter, warmer weather and the weakness of Sterling – which has kept people at home, rather than travelling abroad – were all contributory factors and warned of a weaker outlook for the rest of the year. Next's share price fell 0.8% to £16.72 as a result of the announcement.

Elsewhere optimistic trading statements from pub chain operator, JD Wetherspoon, and British American Tobacco, had a positive effect on their share prices with the former up 17¼p or 4% at 463¼p, and the latter up 31p or 1.96% at £16.14. Overall, the FTSE 100 index was up 21 points or 0.6% at 4,358.20 supplementing its 97-point gain on Tuesday.

 

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