Barclays volatile; commodity stocks jump in London
MADRID (MarketWatch) -- Mining and oil stocks drove Britain's benchmark stock index higher on Tuesday, while shares of
The U.K.'s FTSE 100 index (UKX) rose 47.09 points, or 0.8%, to 5,687.73, tacking on more gains in the afternoon as Wall Street moved higher in the wake of better-than-expected factory output data.
On Thursday, the European Central Bank is expected to cut interest rates and the Bank of England is expected to boost its asset-purchase program.
Improved risk appetite was also lifting sentiment.
The bank, which was slapped with a huge fine last week for manipulating interbank lending rates, announced the resignation of Chief Executive Robert Diamond. Chairman Marcus Agius, who had stepped down Monday, will reassume his post at the head of the board to help search for a new CEO.
Shares spent much of the day climbing on that news until a later announcement that Chief Operating Officer Jerry del Missier had also quit.
Analysts at Daniel Stewart & Co. said Barclays will have difficulty replacing Diamond and it will be harder to reach growth and return-on-equity targets. "At the very least, there will be a hiatus period," the analysts said.
They also said the Libor-manipulation scandal was not confined to Barclays and investors now will be wondering who among the senior executives in other U.K. banks and overseas institutions are at risk of being pushed out. Read 'Period of remorse' catches up to Diamond.
Other banks were mixed.
Mining stocks were also in the black as metals prices pushed higher across the board.
On the downside, energy major
Other energy stocks moved higher, as crude prices surged on Iran worries. Read oil at six-week high on Iran worries.