RBS rises on broker upgrade Royal Bank of Scotland rises after Cazenove says the majority state-owned bank's new management is on the right path Peter Stiff Recommend?
The FTSE 100 closed down 27.41 points at 4,252.57 led by banks after a trading update from Standard Chartered failed to excite investors while commodity stocks were also under pressure.
Standard Chartered said it remained cautious on its outlook, with consumer banking income for the first half expected to be lower than the previous six months and bad debts rising sharply in the division. The bank's stock lost 2.3 per cent, while HSBC, which also has a large presence in Asia, dropped 2.4 per cent.
Barclays closed up 1.05p to 269.75p and Lloyds Banking Group down 1.07p at 66.5p.
Royal Bank of Scotland got a boost after Cazenove upgraded the majority taxpayer owned bank to "outperform". Related Links
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The broker said that the bank’s new management team was on the right path to a smaller group, reducing the size and risk of its balance sheet. It added that it expects the share price to react positively to news on restructuring, the asset protection scheme and disposals of non-core businesses. RBS shares rose 1.19p to 36.75p.