Morning Markets: Banks climb despite dividend uncertainty

The FTSE opened at 4303.26 down 2.14% on the previous close of 4394.21. Miners opened lower on con...

The FTSE opened at 4303.26 down 2.14% on the previous close of 4394.21.

Miners opened lower on concerns about demand for metals if the world economy does slow as much as predicted, while Lloyds TSB bucked the trend on talk the government may have to allow it to set its own dividends or risk the merger deal with HBOS unwinding. Royal Bank of Scotland is also higher on talk that it too will seek a similar dividend concession if Lloyds is successful.

Kazakhmys, ENRC and Xstrata lead the fallers.

Meanwhile, European shares slipped in early trade on Wednesday, with recession fears resurfacing after impressive gains in the last two sessions on coordinated measures by governments to revive the struggling banking sector.

Elsewhere Southeast Asian nations backed by Japan, South Korea, China and the World Bank, are the latest to join the global rescue effort, agreeing to create a multi-billion fund to buy bad debt and help banks.