FTSE lower DAX recovers from bank break up

Corporate news weighed heavily on the FTSE this morning with a mixture of results, negative profit guidances and investigation news dragging the index down. Top of the list was the significantly lower profits at the Royal Bank of Scotland which caused a prompt selloff and a 5.3% decline in the bank’s shares. The worst hit was the bank’s mortgage lending where borrowers' appetite for big ticket purchases has been dampened by Brexit. Just Eat, on the other hand, blamed warm weather in February and a later Easter for a decline in orders in the same quarter.

Surprisingly the DAX is trading higher despite a slide in Deutsche Bank a day after a major tie-up with Commerzbank fell through. On Friday the bank reported an increase in net profits but income at its bond trading division - which makes up more than half of the group’s income - dropped nearly 19% on the quarter.

US GDP numbers to dominate dollar trading

Dollar traders are positioning themselves for a set of strong US GDP data, due to be released later today, and are nudging the dollar higher towards the peak levels of this year. The number will provide some clarity over increasingly confusing US economic data, which shows continued strength in some parts of the economy, but also the first warning signals of a potential slowdown in others.

The pound has recovered from yesterday’s plunge against the dollar and is trading in positive territory but the progress is fairly slim. Brexit headlines have thinned out compared with March but the fundamental lack of clarity about what comes next is keeping sterling low, just shy of $1.290.