Barclays dominates headlines as shares plunge 6% following rights issue announcement

<p>Barclays have dominated the headlines this morning after announcing that they are to issue £5.8bn in new shares. This comes after changes to regulatory demands, […]</p>

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Barclays have dominated the headlines this morning after announcing that they are to issue £5.8bn in new shares.

This comes after changes to regulatory demands, which requires lenders to have £3 of capital for every £100 leant. This has left Barclays with a shortfall of around £7bn.

Shares were down as much as 6% in early trading but gained some ground as investors found reassurance in the half yearly earnings, reporting a pre-tax profit of £3.6bn.

Markets were up across the globe after a number of positive outlook statements curbed the unease created by the weak performance from the banking sector.

The FTSE was trading at 6600 by 9am, the DAX was at 8322, and the DOW was trading at 15580. Within the FTSE Index, engineering group GKN and ITV were the strongest performers, both climbing over 5%.

We are waiting for one high importance figure out at 3pm, which is the US consumer confidence – forecast to be similar to last month’s data.

Investors will also be looking ahead to the non-farm employment change later in the week.

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