London open: Stocks stressed after banking tests

18th Jul 2011 08:20

Stocks have taken a bit of a tumble after the release of the results from banking stress tests after the close on Friday.Eight European banks failed stress tests drawn up by the European Banking Authority (EBA). Five Spanish banks - Catalunya Caixa, Pastor, Unnim, Caja3 and CAM - and two from Greece - ATEbank and EFG Eurobank - were deemed not to be sufficiently healthy to withstand a banking crisis. More surprisingly perhaps, one Austrian bank, the Oestereichische Volksbank, failed. Lloyds Banking Group is among the fallers in London today.In stocks news, commodity trading house Glencore is adding to its metal assets in Peru with the purchase of a 70% stake in Marcobre, which owns the Marcona Copper property and the Mina Justa exploration and development project, for $475m (£295m).Global engineering giant GKN is looking to expand its Land Systems division after announcing that it is to acquire engineer Stromag for €164m (£146m).Staffing company SThree posted a rise in profits in the six months to May 29 as market conditions improved. Pre-tax profits climbed to £11.2m from £7.3m over the same period the previous year, while revenues rose to £254.9m from £221.7m.Among smaller companies, carpet and flooring retailer United Carpets rolled out a 13% increase in annual pre-tax profit as total like for like sales fell by 1.4% in the first 15 weeks of the new financial year. For the year ended 31 March 2011 revenue was unchanged at £27.5m while pre-tax profit rose to £1.243m from £1.098m in 2010.Shares in energy storage and clean fuel company ITM Power jumped after it announced that FTSE 250-listed support services group Carillion is to use its technology for operating hydrogen-powered Ford Transit vehicles in a week-long trial later this month.Shares in technology firm Seeing Machines jumped 25% on Monday after it trumpeted the arrival of the world's first 3D laptop that requires no special glasses for watching movies or playing games in 3D. Seeing Machines' said its faceAPI technology was a key technological component in the glasses-free 3D capability, allowing the laptop's built-in webcam to track the viewer's eye position.