Barclay's shares boosted by fundraiser news

Shares in Barclays were given a boost today after the banking giant confirmed it was considering a fundraising move that could reportedly see it tap overseas investors for £4bn (€5.07bn).

Barclays said plans to issue shares to new and existing shareholders were under “active consideration” after weekend press reports that the bank was holding talks with six so-called sovereign wealth funds.

The cash call would see Barclays shore up its balance sheet without resorting to a full-blown discounted rights issue.

Shares jumped almost 12% at one stage as the confirmation ended weeks of speculation over how it plans to raise cash.

A mini-trading update from the bank was also well received, as Barclays reassured that profits before tax in May were “well ahead” of last year’s monthly run rate.