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London markets climb as Staley steps aside after FCA Epstein probe

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The capital’s FTSE 100 premier index advanced 0.60 per cent to hit 7,280.97 points, while the mid-cap FTSE 250 climbed 0.39 per cent to 23,196.86 points (Photo by Dan Kitwood/Getty Images)

London markets climbed during the opening session of November as Barclays chief Jes Staley stepped down after UK regulators showed the bank preliminary findings of its investigation into his ties with disgraced financier Jeffrey Epstein.

The capital’s FTSE 100 premier index advanced 0.60 per cent to hit 7,280.97 points, while the mid-cap FTSE 250 climbed 0.39 per cent to 23,196.86 points.

Barclays announced this morning its boss Jes Staley will leave the bank with immediate effect after it was shown initial findings of a probe into his relationship with Jeffrey Epstein.

Russ Mould, investment director at AJ Bell, said: “The bank has just come through the final payment protection insurance compensation payments in 2019, the conclusions of the Qatar fraud trial case in 2020 and seen off a fierce challenge to its strategy from an activist investor in 2021 only for chief executive Jes Staley to now step down so he can defend his reputation and contest how the FCA and PRA have chosen to characterise his relationship with Jeffrey Epstein in their investigation,”

The bank’s share price dipped 1.90 per cent on the news during mid morning trading.

The index was weighed down heavily by Cambridge-based cybersecurity firm Darktrace plummeting over 14 per cent as investor sentiment souring toward the company due to its ongoing ties with embattled businessman Mike Lynch.

Telecoms giant BT offset Barclays and Darktrace’s losses by climbing 3.85 per cent as investors took kindly to news it could bring forward its cost cutting programme when it announces third quarter results this week.

Housebuilders also dragged the blue-chip index down during the first couple hours of trading, with the likes of Barratt Developments, Persimmon and Taylor Wimpey falling more than 1.65 per cent.

London’s strong performance bled into the continent. Germany’s Dax 30 gained 0.90 per cent, while the pan-European Stoxx 600 was up 0.62 per cent.

The pound weakened sharply against the greenback, falling 0.28 per cent to buy $1.3654.