FTSE reverses as oil price falls, while Lloyds hit by downgrade

Discussion in 'Market News' started by Lily, Jan 25, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    JP Morgan cuts target price for Lloyds but keeps overweight rating

    An early rally on stock markets has soon fizzled out, as oil once again goes into reverse.

    Among the fallers is Lloyds Banking Group, down 2.05p or 3% at 64.81p as JP Morgan cut its price target on the bank from 98p to 90p but kept its overweight rating. It reduced its forecast for Lloyds’ net interest margin, saying it could decline further in 2016 in the absence of interest rate rises. Last week Bank of England governor Mark Carney said now was not the right time to raise rates.

    We’ve got a rather troubling start to the European session with crude oil having sold off quite sharply over the last hour or so. We remain well up on the prices posted at the middle of last week, but this weakness could unsettle equity markets which soared last week as oil prices appeared to find something of a foot-hold.

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