Following a favorable Supreme Court ruling for lenders involved in the UK car finance scandal, shares in Close Brothers surged 27%, leading the FTSE 250 index of medium-sized companies. Lloyds Banking Group saw a 6% rise in shares, reflecting investor optimism. The FCA's ongoing consultation on a compensation scheme for motorists indicates potential costs between £9 billion and £18 billion. Prior to the ruling, lenders had been facing estimated costs of £44 billion. In the euro zone, investor sentiment has dropped due to dissatisfaction with the EU-US tariff deal.
Shares in lenders exposed to the UK car finance scandal surged at the start of trading in London, with Close Brothers jumping 27% following a favorable Supreme Court ruling.
Lloyds Banking Group's shares also increased by almost 6% after the court's decision, despite having set aside £1.2 billion for compensation related to car finance commissions.
The Supreme Court ruling represents a significant win for lenders, as they faced an estimated bill of £44 billion before the rulings were overturned.
Investor sentiment in the euro zone has declined due to negative reactions to the EU's tariff deal with the US, with the Sentix economic index dropping to -3.7 points.
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