Markets: Qatar chatter helps IAG to take off

British Airways owner International Airlines Group (IAG) topped the FTSE 100 Index after reports that Qatar’s national carrier will join its global alliance.

Qatar Airways is expected to join IAG and American Airlines in the OneWorld Alliance, a group with linked marketing and linked routes. Shares in IAG lifted 4.7p to 159p.

Michael Hewson, senior analyst at CMC Markets, said: “On the downside, both Royal Bank of Scotland and Lloyds have underperformed after UBS cut its price targets on the state-owned lenders citing increased regulatory burdens which will impact negatively on their future profitability.”

RBS finished more than 3 per cent lower, off 8.9p to 257.5p, while Lloyds was down 1p at 39p. Uncertainty surrounding banks also reflected recommendations from a European advisory group that big lenders should be split to protect retail banking from risky trading, echoing the Vickers commission in the UK. Barclays was down 1.6p at 220.75p while HSBC was 7p cheaper at 580.5p.

The wider market struggled for direction as rumours that Spain will formally ask for a bail-out from the EU this weekend – seen as positive for stocks – were checked by suggestions that Germany would prefer it to wait. The Footsie was down 11 points at 5,809.5.

Among risers, Tesco was 2 per cent higher ahead of results which are expected to show a 12 per cent drop in half-year profits to £1.5 billion. With investors holding out hopes for a stabilisation in UK sales, shares were up 5.7p at 336.7p.

ITV shares maintained their recent strong run – lifting 0.6p to 90.6p – amid ongoing speculation it is a bid target for private equity firms.

NEW YORK: Wall Street ended nearly flat after a volatile session as Spanish uncertainty shackled a market struggling to build on gains that took the S&P 500 to its highest in nearly five years.

The Dow Jones industrial average ended down 32.83 points, or 0.24 per cent, at 13,482.28 while the Standard & Poor’s 500 Index was up 1.20 points, or 0.08 per cent, at 1,445.69. The Nasdaq Composite Index rose 6.51 points, or 0.21 per cent, to 3,120.04.