Britain's FTSE steadies, RBS and Barclays diverge on US settlement updates

LONDON: 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.

Copyright Reuters, 2016