Financial News

LONDON (ShareCast) - 1630: Close London's top stocks closed near its session high on news that the US economy grew faster than expected in the third quarter.

Traders loved news that the US economy grew 3.5% annually in the last quarter, more than expected and the fastest rate of increase in two years.

Part-nationalised bank Lloyds Banking (LSE: LLOY.L - news) has confirmed it is contemplating digging an escape tunnel from the government's asset protection scheme.

Lloyds said it is in advanced discussions with UK authorities regarding alternatives to entering the state insurance scheme for toxic debt. The lender is considering raising cash via an underwritten rights issue and debt swap.

The shares have advanced strongly on the news, dragging fellow part-nationalised lender Royal Bank of Scotland (LSE: RBS.L - news) with them, while Barclays (LSE: BARC.L - news) was also wanted.

Royal Dutch Shell (Amsterdam: RDSA.AS - news) remained in the doghouse. In a week in which long time rival BP topped market expectations with its third quarter results, the Anglo-Dutch oil giant's third quarter earnings (on a current cost of supplies (CCS) basis) of $3bn, down from $10.9bn a year ago, failed to enthuse the market.

FTSE 100 closed up 57 at 5,138.

1455: Footsie (news) is still in the blue as banks advance and miners rebound from some losses yesterday. RBS and Lloyds are soaring after the latter confirmed that it is in advanced discussions with UK authorities regarding alternatives to entering the state insurance scheme for toxic debt. Kazakhmys (LSE: KAZ.L - news) leads miners higher, helped by higher metals prices. FTSE 100 up 31 at 5,112.

1340: Footsie has jumped into the blue following a good start on the US where shares have been boosted by cheery GDP data. RBS and Lloyds are soaring after the latter confirmed that it is in advanced discussions with UK authorities regarding alternatives to entering the state insurance scheme for toxic debt. FTSE 100 up 28 at 5,109.

1230: Footsie has slipped back slightly as oil stocks continue to weigh following Shell (LSE: RDSB.L - news) 's 73% fall in third quarter profits. Shell is joined lower by peers BG Group (LSE: BG.L - news) and Cairn Energy (Virt-X: CNE1.VX - news) . Meanwhile, US jobless claims fell by 1,000 to 530,000 in the week to 24 October, while continuing claims fell 148,000 to 5.797m in the week to 17 October. Third quarter GDP rose by 3.5%. 1140: Footsie is still flat as weak oil stocks offset good gains from banks. RBS is now up more than 10%, while Lloyds is up 8.5% after the latter confirmed that it is in advanced discussions with UK authorities regarding alternatives to entering the state insurance scheme for toxic debt. However, Shell is leading the oil sector lower after saying third quarter profits fell by 76%. FTSE 100 down 3 at 5,077.

1102: AstraZeneca (LSE: AZN.L - news) has reported third quarter earnings of $1.68 a share, better than the $1.38 analysts had forecast.

1025: Banks RBS and Lloyds are going well following weakness recently after a report in the FT said the latter has been given the green light to consult investors about a £25m fundraising. But oil giant Shell leads the fallers after reporting a 73% fall in third quarter earnings. FTSE 100 down 4 at 5,076.

0900: London's leading index is now down just 3 points at 5,077 as RBS, up 6%, and Lloyds, 4% higher, offset losses at Shell. Prudential and Aviva (LSE: AV.L - news) are also better, but Shell remains a drag, trading down 3% after a huge drop in profit duriung the third quarter.

0825: The FTSE 100 is down 26 at 5,053 as investors respond negatively to a 73% slump in third quarter earnings at oil giant Shell. Its shares are down over 3%. Miners are also struggling. Kazakhmys is worst performer, down 5%, despite being on track to hit full year targets. It said maintenance work could hit Q4 output. The decision by National Express (LSE: NEX.L - news) to call off talks with suitor Stagecoach sent its shares tumbling 14%.