The pan-European FTSEurofirst 300 index was flat early on Tuesday as ongoing credit concerns rattled banks, but Royal Bank of Scotland forged higher on talk of a stake-build and a successful rights issue. “Markets still remain pretty volatile,” said Henk Potts, equity strategist at Barclays Stockbrokers. “There's still concern about the fact that the credit crunch continues to claim victims ... and concern about the fact that the economic outlook looks as if it's deteriorating.” The FTSEurofirst 300 was flat at 1,319.09 at 0908 GMT. Britain's FTSE 100 was up 0.2 percent, however, as Royal Bank of Scotland (RBS) jumped 5.6 percent, but other UK banks staged a mixed performance. RBS gained as traders cited talk of stake building by British activist fund The Children's Investment Fund. RBS declined to comment, while TCI was not immediately available for comment. Irish banks dominated Europe's downside, however, falling sharply as they reacted to this week's renewed credit concerns after the Irish market closed on Monday for a public holiday. Bank of Ireland slumped 8.3 percent, while Allied Irish Bank lost 4 percent, and Anglo Irish Bank dropped 8.2 percent, catching up to Monday's announcement of a profit warning and discounted rights issue from British mortgage lender Bradford & Bingley.
