Morning markets: Financials fall on Obama attack

In early trading, the FTSE was steady as a response to President Obama's statement on banking regulation, rising 0.1% to 5343.23, however financial stocks fell as UK markets opened.

Obama proposed banning proprietary trading desks, and US banks from owning, investing in or sponsoring hedge funds or private equity funds. The plans, still subject to Congressional approval, would be a major blow to banks, even though many have scaled back trading desks already. Barclays, the object of a broker note from Credit Suisse earlier in the week suggesting it could be forced to raise £17bn, continued to slide, by 3.00% to £2.75. Schroders, which is being sold short by the European arm of US hedge fund Och Ziff Capital Management, also fell, by 1.2% to £12.76. A higher ...