Banking stocks decline as Moody's announces potential downgrade – City Index Spread Betting
Spread betting provider City Index (http://www.cityindex.co.uk/) takes a look at the financial activity shaping the markets on 24th May 2011, including news of a Walmart profits rise.
The FTSE 100's banking stocks have this morning (May 24th) declined after Moody's announced some financial institutions may face a ratings cut.
Out of 18 UK financial organisations which are seen to receive debt and deposit UK government support, 14 have been highlighted for a potential downgrade.
These include Santander UK, Lloyds TSB, Nationwide Building Society, Yorkshire Building Society and the Co-Operative Bank.
Barclays and HSBC are not included, but the ratings agency pointed out that both of their senior debt ratings have been placed on negative.
As of 09:34 BST on the FTSE 100, Barclays was trading down by 1.04 per cent compared to yesterday's close, while HSBC was up by 0.19 per cent, perhaps because Barclays also saw its senior deposit ratings pushed to negative.
Lloyds Banking Group fell by 0.61 per cent, while the Royal Bank of Scotland had advanced by 0.29 per cent.
Lead Moody's analyst for several UK banks Elisabeth Rudman commented that the reassessment is because of "ongoing guidance from the UK authorities (the Bank of England, the Financial Services Authority and the Treasury) that banks that fail in the future should not expect capital injections from the public purse".
For more information on the latest market moving events, s ee the City Index Economic Calendar at http://www.cityindex.co.uk/market-analysis/economic-calendar.aspx
Learn more about financial spread betting with City Index at http://www.cityindex.co.uk/spread-betting/
Spread betting and CFDs are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, CFD trading and, in the UK, spread betting.
We constantly look to widen the range of assets we offer, improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support. Visit http://www.cityindex.co.uk/ for more information.
The FTSE 100's banking stocks have this morning (May 24th) declined after Moody's announced some financial institutions may face a ratings cut.
Out of 18 UK financial organisations which are seen to receive debt and deposit UK government support, 14 have been highlighted for a potential downgrade.
These include Santander UK, Lloyds TSB, Nationwide Building Society, Yorkshire Building Society and the Co-Operative Bank.
Barclays and HSBC are not included, but the ratings agency pointed out that both of their senior debt ratings have been placed on negative.
As of 09:34 BST on the FTSE 100, Barclays was trading down by 1.04 per cent compared to yesterday's close, while HSBC was up by 0.19 per cent, perhaps because Barclays also saw its senior deposit ratings pushed to negative.
Lloyds Banking Group fell by 0.61 per cent, while the Royal Bank of Scotland had advanced by 0.29 per cent.
Lead Moody's analyst for several UK banks Elisabeth Rudman commented that the reassessment is because of "ongoing guidance from the UK authorities (the Bank of England, the Financial Services Authority and the Treasury) that banks that fail in the future should not expect capital injections from the public purse".
For more information on the latest market moving events, s ee the City Index Economic Calendar at http://www.cityindex.co.uk/market-analysis/economic-calendar.aspx
Learn more about financial spread betting with City Index at http://www.cityindex.co.uk/spread-betting/
Spread betting and CFDs are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, CFD trading and, in the UK, spread betting.
We constantly look to widen the range of assets we offer, improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support. Visit http://www.cityindex.co.uk/ for more information.
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