Increased risk appetite was benefitting the banking and mining sectors on Monday afternoon as benchmarks across Europe surged higher.

Friday's release by Oliver Wyman on the Spanish financial sector was lifting sentiment on markets today. The independent auditor estimated that banks would need €59.3bn in funds in order to stay afloat, well within the €100bn limit given by the European Union.

Meanwhile, manufacturing figures from the US came in above expectations: the ISM manufacturing survey rose from 49.6 to 51.5 in September, its best level since May.

FTSE 100 banking stocks were in demand with Royal Bank of Scotland, Lloyds and Barclays benefiting from ratings upgrades from Liberum Capital, which lifted its recommendation on all three to 'buy'.

HSBC was also on the rise; the company announced today that it has sold off its UK property advisory unit, Property Vision Holdings Limited.

Meanwhile, resources stocks were making decent gains with headlines focused on the recommended merger of equals betweens commodities trader Glencore and mining titan Xstrata.

Jefferies reiterated its positive stance on both stocks this morning, saying that they while they may underperform after the shareholder votes later this year, the combined 'Glenstrata' entity will be one of its top picks for the long term.


Top performing sectors so far today
Banks 4,000.14 +2.96%
Electronic & Electrical Equipment 3,484.71 +2.88%
Industrial Metals & Mining 2,734.87 +2.54%
Mining 18,479.13 +2.48%
Industrial Engineering 7,745.38 +2.37%

Bottom performing sectors so far today
Forestry & Paper 6,769.80 -0.24%
Industrial Transportation 2,321.23 -0.24%
Food & Drug Retailers 4,141.28 -0.14%

BC

Related share prices
Barclays (BARC) share price
HSBC Holdings (HSBA) share price
Lloyds Banking Group (LLOY) share price
Royal Bank of Scotland Group (RBS) share price
Xstrata (XTA) share price
Glencore Xstrata (GLEN) share price