Source: Sharecast
The FTSE 100 ended the session down 0.01% at 7,124.72, while the FTSE 250 managed gains of 0.14% to 22,926.81.
Sterling was in a mixed state as well, last trading 0.26% weaker against the dollar at $1.3847, while it gained 0.14% on the euro to €1.1721.
"Markets in Europe have seen a fairly subdued session despite a lot of important macro news which has centred largely around the banking sector, as well as CPI inflation, with the FTSE 100 managing to edge back towards last week’s highs before giving up its gains, while European markets have slipped slowly lower as the day has progressed," said CMC Markets chief market analyst Michael Hewson.
The top-flight index started the session slightly higher after the Bank of England announced that it was removing restrictions on bank dividend payouts, introduced in the wake of the Covid-19 pandemic, as the sector remained "well-capitalised" and "resilient".
"Today's news may feed expectations that the likes of Lloyds, Barclays and NatWest can emulate the recent actions of their American cousins and sanction super-sized shareholder returns by releasing excess capital built up through the course of the coronavirus crisis," said AJ Bell financial analyst Danni Hewson.
"However, some protections are being kept in place to ensure banks still have extra capital put by just in case and, in order not to make regulators twitchy, the sector may be wary of going too far, too fast on capital returns.
"We’ll find out very soon just how generous UK banks are prepared to be, with first half results season commencing at the end of July."
In the US, earnings season was getting into gear with JPMorgan and Goldman Sachs reporting in New York, while Citi, Bank of America and Wells Fargo make releases Wednesday, and Morgan Stanley on Thursday.
"After a strong first quarter, the sector has some impressive hurdles to scale, but again earnings are moving in a positive way," said IG chief market analyst Chris Beauchamp.
"As a look at the US economy, bank earnings are vital for providing further insight, and one that provides a welcome diversion from the endless focus on inflation.
"Bank stocks on Wall Street have also come off recent highs, but seem primed for a bounce if earnings can paint the right kind of picture."
On home shores, precious metals miner Fresnillo gained 3.11% as gold prices rose.
Howden Joinery was up 3.64% after it said trading was strong in the first half and ahead of its expectations, with revenue ahead of the same period in 2020 and 2019.
Dr Martens was boosted 4.32% by an upgrade to ‘buy’ from ‘neutral’ at Goldman Sachs.
On the downside, British Land reversed earlier gains to fall 1.58%, even after saying rent collection was improving and activity at its retail parks was close to pre-pandemic level, as lockdown restrictions eased.
Redde Northgate closed down 1.64% after the commercial vehicle hire business said it had bought Charged Electric Vehicles (ChargedEV), a charging equipment supply and installation specialist, for an undisclosed sum.
Market Movers
FTSE 100 (UKX) 7,124.72 -0.01%
FTSE 250 (MCX) 22,926.81 0.14%
techMARK (TASX) 4,480.20 0.19%
FTSE 100 - Risers
Fresnillo (FRES) 815.00p 3.11%
Ashtead Group (AHT) 5,702.00p 1.82%
Rentokil Initial (RTO) 517.60p 1.76%
Halma (HLMA) 2,850.00p 1.71%
Rightmove (RMV) 667.00p 1.68%
Relx plc (REL) 2,062.00p 1.63%
Bunzl (BNZL) 2,617.00p 1.59%
Scottish Mortgage Inv Trust (SMT) 1,339.50p 1.55%
Auto Trader Group (AUTO) 658.00p 1.48%
DCC (CDI) (DCC) 5,992.00p 1.46%
FTSE 100 - Fallers
NATWEST GROUP PLC ORD 100P (NWG) 201.40p -2.61%
Rolls-Royce Holdings (RR.) 93.61p -2.22%
International Consolidated Airlines Group SA (CDI) (IAG) 173.42p -2.02%
Ocado Group (OCDO) 1,901.00p -1.96%
Whitbread (WTB) 2,981.00p -1.88%
London Stock Exchange Group (LSEG) 7,800.00p -1.79%
Antofagasta (ANTO) 1,395.00p -1.76%
JD Sports Fashion (JD.) 927.00p -1.61%
Barclays (BARC) 170.00p -1.57%
Melrose Industries (MRO) 154.55p -1.56%
FTSE 250 - Risers
Trustpilot Group (TRST) 381.00p 9.67%
Howden Joinery Group (HWDN) 886.00p 3.97%
Watches of Switzerland Group (WOSG) 947.00p 3.72%
Auction Technology Group (ATG) 1,312.00p 3.63%
Tyman (TYMN) 458.50p 2.80%
Future (FUTR) 3,232.00p 2.80%
Spirent Communications (SPT) 267.60p 2.61%
IP Group (IPO) 121.20p 2.36%
Hill & Smith Holdings (HILS) 1,582.00p 2.33%
Fidelity China Special Situations (FCSS) 402.00p 2.29%
FTSE 250 - Fallers
Cineworld Group (CINE) 68.02p -7.13%
Micro Focus International (MCRO) 417.00p -3.36%
Dixons Carphone (DC.) 126.50p -3.15%
Elementis (ELM) 153.90p -3.02%
Airtel Africa (AAF) 83.05p -2.87%
Unite Group (UTG) 1,134.50p -2.62%
Tullow Oil (TLW) 51.14p -2.55%
Workspace Group (WKP) 849.50p -2.41%
Shaftesbury (SHB) 602.00p -2.35%
CLS Holdings (CLI) 255.00p -2.30%
