FTSE in negative territory

The FTSE 100 Index was in negative territory today, despite banks and insurers rounding off a good week with further gains.

Sentiment was impacted by lacklustre trading in Asia, where investors were unconvinced by figures released yesterday showing a sharp drop in jobless claims in the US economy. The FTSE 100 Index was 11.9 points lower at 5818.2, matching the performance of markets in France and Germany.

Banks dominated the risers board after broker Deutsche Bank upgraded its rating on the sector, while downgrading telecoms and healthcare.

Standard Chartered set the pace with a rise of 15.5p to 703.5p, while Barclays was 4.5p higher at 237.2p and Lloyds Banking Group lifted 0.6p to 39.9p. They were told this week that they will not have to hold extra capital against new loans made under the £80 billion Funding for Lending scheme.

Financial services provider Hargreaves Lansdown was another big riser in the top flight after a first quarter trading update showed revenues, customer numbers and assets under administration were ahead of expectations. Shares rose 16p to 704p.

Industrial materials firm Morgan Crucible was the biggest faller in the FTSE 250 Index, declining 12% or 31.45p to 223.35p, after it said full-year results will be below hopes due to deteriorating conditions in China and Europe.