FTSE steady prior to Greek election
The London market has kept its head above water due to hopes that central banks globally are ready to act if this weekend's election in Greece ultimately leads to the debt-laden country leaving the euro.The FTSE 100 Index closed 11.8 points higher at 5478.8 after reports that the US Federal Reserve, Bank of Japan and Bank of England were drawing up plans to cushion the blow of a Greek default.
Sentiment was further helped after European Central Bank president Mario Draghi confirmed the bank was ready to provide further support "where needed" to calm markets.
When London's leading shares index next opens, the make-or-break Greek election will have taken place and the country's future in the single currency could be determined.
The pound was up against the euro at 1.23 as the single currency weakened ahead of Sunday's Greek poll, while sterling was also ahead against the US dollar at 1.56.
Traders in London were distracted from the eurozone crisis by a multibillion-pound lending scheme. Lloyds Banking Group and Royal Bank of Scotland were up by 5% and 8% respectively after the Bank of England and Treasury revealed plans to lend to banks on condition they pass it on as cheaper loans.
RBS added 18.2p at 247.6p, Lloyds grew 1.6p at 31.3p and Barclays advanced 8.1p to 200.8p after Thursday night's announcements, which also included an emergency scheme that offers six-month liquidity to banks in tranches of at least £5 billion a month.
Michael Hewson, senior market analyst at CMC Markets, said: "The prospect of co-ordinated central bank intervention from central banks next week in the event of turmoil caused by the result of this weekend's Greek elections has given equity markets a boost and calmed some rather frayed investor nerves."
In corporate news, shares in pawnbroker Albemarle & Bond were lower after it reported a "marked slowdown" in activity at its gold buying business. Growth in the value of gold bought by the company has slowed from over 50% to mid-single digits in the last eight weeks, it said. Shares fell 1p to 275p.
BSkyB and BT shares continued to come under pressure over fears that the media giants have overpaid in their £3 billion Premier League deal. BSkyB shares dropped 1%, or 9.5p, to 661.5p while BT was 0.5p off at 201.2p as Wednesday's deal continued to trouble investors.
Traders in London were distracted from the eurozone crisis by a multibillion-pound lending scheme. Lloyds Banking Group and Royal Bank of Scotland were up by 5% and 8% respectively after the Bank of England and Treasury revealed plans to lend to banks on condition they pass it on as cheaper loans.
RBS added 18.2p at 247.6p, Lloyds grew 1.6p at 31.3p and Barclays advanced 8.1p to 200.8p after Thursday night's announcements, which also included an emergency scheme that offers six-month liquidity to banks in tranches of at least £5 billion a month.
Michael Hewson, senior market analyst at CMC Markets, said: "The prospect of co-ordinated central bank intervention from central banks next week in the event of turmoil caused by the result of this weekend's Greek elections has given equity markets a boost and calmed some rather frayed investor nerves."
In corporate news, shares in pawnbroker Albemarle & Bond were lower after it reported a "marked slowdown" in activity at its gold buying business. Growth in the value of gold bought by the company has slowed from over 50% to mid-single digits in the last eight weeks, it said. Shares fell 1p to 275p.
BSkyB and BT shares continued to come under pressure over fears that the media giants have overpaid in their £3 billion Premier League deal. BSkyB shares dropped 1%, or 9.5p, to 661.5p while BT was 0.5p off at 201.2p as Wednesday's deal continued to trouble investors.
© 2013 Press Association