Britain's top shares held roughly steady in a shortened session on Friday, with RBS and Barclays heading in opposite directions following the latest developments in a US probe into misselling of mortgage securities. The FTSE 100 ended up 0.1 percent, and was up 0.8 percent for the week - a third successive week of gains. The index hit its highest level in over two months.
Royal Bank of Scotland closed up 1.4 percent, after the US Department of Justice settled with Deutsche Bank with a smaller fine than had been originally proposed, prompting speculation it might also be lenient on RBS. However, Barclays fell 0.9 percent after it failed to agree a settlement with the DoJ. The department has launched a lawsuit against the British bank, but Barclays rejects its complaint. The FTSE 100 traded just 22 percent of its 90-day average volume.
It only traded for half a day due to the upcoming Christmas holiday. Both Monday and Tuesday are UK market holidays. The UK bluechip index ended up 0.3 percent on Thursday in thin pre-Christmas volumes, led by gains in the energy sector and among precious metals miners.
DEUTSCHE BANK: Deutsche Bank has agreed to a $7.2 billion settlement with the US Department of Justice over its sale and pooling of toxic mortgage securities in the run-up to the 2008 financial crisis.
CREDIT SUISSE: Credit Suisse had agreed in principle to pay US authorities $2.48 billion to settle claims it misled investors in residential mortgage-backed securities it sold in the run-up to the 2008 financial crisis, the Swiss bank said on Friday.
IAG: British Airways cabin crew have called off a planned Christmas strike, trade union Unite said on Thursday.
MAIL.RU: Russia's second-biggest mobile operator Megafon said on Friday it would buy a majority stake in internet group Mail.ru from the two companies' common shareholder Alisher Usmanov for $740 million.
LSE: In advancing their planned merger, the German exchange operator Deutsche Boerse and its London counterpart LSE appear to be prepared for further compromises with the German state of Hesse and provide the regulator with a permanent veto right, FAZ reported citing unnamed.
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