The FTSE 100 has recovered 57 points to 7,012 on Wednesday morning, boosted by the weak pound, which is down to below $1.30.
Wednesday saw the third-quarter results for various lenders, sending shares both up and down for different banks.
Barclays
Shares in Barclays (LON: BARC) edged up just over 3% on latest results showing profits were up to £1.5 billion in the three months to September 30.
“In spite of macroeconomic uncertainty and particularly concerns over Brexit, which weigh heavily on market sentiment, 2018 is proving to be a year of delivery on our strategy at Barclays. We remain focused on generating improved returns and on distributing a greater proportion of excess capital to shareholders over time,” said Jes Staley, the bank’s chief executive.
Despite the increase in profits this year, profits were dampened by the £2.1 billion fines for alleged malpractice.
Shares are currently trading +2.82% at 170,44 (1600GMT).
Meanwhile, Metro Bank’s (LON: MTRO) 197% rise in profits was not enough to impress investors. Shares fell over 11% lower to 2,276p this morning after the lender’s net interest margin fell from 1.94% to 1.77%.
Antofagasta
Antofagasta (LON: ANTO) reported a 15% quarter-on-quarter increase in copper production for the third quarter of 2018.
The firm has, however, downgraded its full-year guidance following a 4% dip in copper production for the first nine months.
CEO, Iván Arriagada, said: “As expected, copper production increased 15% quarter-on-quarter, reaching 188,300 tonnes in Q3. Production volumes will continue to grow, with the fourth quarter expected to be particularly strong.”
“While we benefited from higher production in the quarter, our disciplined approach to costs has allowed us to combat inflationary pressures during the year which, combined with the strong molybdenum market, has contributed to a 15% fall in our net cash costs to $1.27/lb and for the full year guidance remains unchanged at $1.35/lb.”
Shares remained largely flat at 757.6p on Wednesday morning’s opening.
FTSE 100 spurred on by the weak pound
The FTSE 100 has largely recovered from the losses it suffered earlier this weak, helped by the pound which has fallen to its lowest level in almost two months.
The pound fell below $1.291.
Connor Campbell, an analyst from Spreadex, said: “It appears that the currency has been spooked by Theresa May’s impending meeting with the 1922 Committee of Tory backbenchers, with whom the PM hardly has the best relationship with at the moment.”
“The outcome of that address may impact how the Brexit negotiations move forward – or don’t, as the troublesome case may be,” he added.
The biggest riser of the FTSE 100 on Wednesday was BT (LON:BT.A), up 3.5% to 249.1p, ahead of results next week.