LONDON -- (Marketwire) -- City Index UK - UK banks led the charge in early morning trading after central bankers came to an agreement to loosen the Basel banking rules on liquidity provisions whilst the FTSE 100 lost a little ground as investors banked profits in mining shares after a strong run last week.
The FTSE 100 was trading with a loss of 14pts to 6075, tracking broadly similar moves in German and French stock indices.
Indeed, after a strong run to trading last week, which saw the FTSE 100 break above the 6000 level, many traders are tempted into banking some of their profits. The miners have taken the focus of profit taking, with the sector losing 0.7% early on.
Many traders are watching how the FTSE will trade as it starts its fifth attempt at breaking above the 6100 resistance level in the last 11 months. A failure to break above the 6100 level could enforce a price correction for blue chip UK equities.
Read full article here: Banks lifted after Basel Banking Rules Loosened | FTSE loses ground
The agreement made by central bankers to loosen the Basel rules on bank liquidity has been met warmly by traders in London, with investors buying into UK banks Barclays and Lloyds as a result.
Both banks' share prices topped the UK gainers list after banks were given an extra four years to meet liquidity rules and were allowed to incorporate a broader spectrum of assets within their liquidity criteria such as bonds.