Better than forecast figures from US bank Citigroup have given the market a lift. After good figures from JP Morgan but larger than expected write-offs from Merrill Lynch, investors were anxious to see which category Citi fell into.
In the event the bank made a $2.5bn loss for the second quarter, compared to a $6.23bn profit this time last year, thanks to a $7.2bn write-down due to subprime and other losses. Manoj Ladwa, a trader at Tradeindex, said: "They've come in a lot better than expected, which is great for the market. It provides a bit of relief, especially after Merrill's figures yesterday."
So having been in decline much of the day, the FTSE 100 is now 33.8 points higher at 5320.1. US Dow futures are indicating a 24 point opening rise, after an early 36 point fall.
UK banks are also benefiting, with Royal Bank of Scotland up 18.5p at 198p, Lloyds TSB 23p ahead at 323.5p and Barclays 23p better at 313.5p, despite only 19% of existing shareholders deciding to take up its share offer.
