This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-29784396

The article has changed 4 times. There is an RSS feed of changes available.

Version 0 Version 1
FTSE higher after bank stress tests FTSE rally proves short-lived
(about 2 hours later)
(Open): The market rose as trading got under way, with sentiment lifted by better-than-expected stress test results for European banks. (Morning): An early rally soon fizzled out with the FTSE 100 down 22.21 points at 6,366.52 in mid-morning trade.
Shortly after opening, the FTSE 100 index was up 25.07 points at 6,413.80. Shares had jumped at first after the stress test results for European banks were seen as better than expected.
However, Lloyds' shares fell 1.8%. The European Banking Authority's results showed Lloyds only narrowly passed the capital under adverse scenarios test. But shares in Lloyds fell 2.4%. The European Banking Authority's results showed Lloyds only narrowly passed the capital under adverse scenarios test.
As a result, there are doubts over when Lloyds will be able to restart dividend payments.As a result, there are doubts over when Lloyds will be able to restart dividend payments.
The biggest reaction to the stress tests was seen in Italy, where shares in Monte dei Paschi sank 15% after it was named as the worst affected bank, with a capital shortfall of €2.1bn (£1.65bn, $2.6bn). "The news will weaken Lloyds' position as it negotiates with the FCA about restarting dividend payments, and the share price fall reflects a hasty recalculation among investors about the chances of an income stream from the bank in the future," said Chris Beauchamp, market analyst at IG.
Travel shares were in favour with oil prices remaining low and worries about the impact of the Ebola virus easing. Other UK banks were also trading lower, with Royal Bank of Scotland down 1.9% and Barclays falling 1.3%.
Travel company TUI Travel rose 2.4%, cruise operator Carnival was 2.2% higher, and British Airways owner IAG climbed 2.1%. The biggest reaction to the stress tests was seen in Italy, where shares in Monte dei Paschi sank 15% before being suspended. The stress test revealed it had a capital shortfall of €2.1bn (£1.65bn, $2.6bn).
On the currency markets, the pound rose 0.04% against the dollar to $1.6095, but fell 0.17% against the euro to €1.2676. Travel shares were in favour as oil prices fell and worries about the impact of the Ebola virus eased.
Travel company TUI Travel rose 2%, cruise operator Carnival was 1.4% higher, and Intercontinental Hotels Group climbed 1.8%.
The price of Brent crude oil dipped after Goldman Sachs cut its oil price forecasts.
Goldman now expects Brent to be about $85 a barrel in the first quarter of 2015, compared with its previous forecast of $100.
It has also cut its forecast for the price of US crude to $75 a barrel from $90.
Brent crude for December delivery fell 25 cents to $85.88 a barrel, while US edged up 2 cents to $81.03 a barrel.
On the currency markets, the pound rose 0.05% against the dollar to $1.6097, but fell 0.04% against the euro to €1.2693.