LONDON (The Deal) -- Continental European markets were all down Monday morning, as Friday's rally ran out of steam. But in London, the FTSE 100 was bucking the trend, driven by banking and mining stocks.

The FTSE 100 was up 0.10% at 6,360.17, while in Paris the CAC 40 was down 0.48% at 4,960.07. In Frankfurt, the DAX was down 0.26% at 10,959.58.

The big lenders saw their shares rise on recommendations from the Financial Stability Board on the so-called Total Loss Absorbing Capacity -- an amount of debt that is convertible to equity -- that banks must hold to get the taxpayer off the hook in future financial crises. The move is designed to avoid the creation of banks that are too big to fail. The TLAC will be 16%of a banking group's assets when measured for risk by 2019, rising to 18% by 2022.

Counter-intuitively, mining stocks were stronger in London, despite a plunge in Australia, after platinum miner Lonmin (LNMIY) announced a $407 million rights issue to existing shareholders at a huge discount. Lonmin was up 10.77% at 18 pence a share.

Zinc producer Nyrstar (NYRSY) , listed in Brussels, also announced it is raising $275 million to pay down debt -- and rose 7.23% to €1.65 -- although this was not enough to push the Belgian index into positive territory.

Even BHP Billiton (BHP) - Get Report   registered a small rise in London, after closing down 5.64% in Sydney overnight as it set out some of the likely damage following its dam burst disaster at the Samarco Mineração SA iron ore operation in Minas Gerais, Brazil, on Thursday. Part of the recovery might be attributable to a broker report suggesting that iron ore prices might stabilize for the rest of this year, because of the loss of production at the Brazilian mine.

Also in Australia, oil and gas company Santos announced plans to sell A$2.5 billion ($1.76 billion) in shares to existing holders at A$3.85 per share, at a discount of 35% to Friday's closing price of A$5.91. The company will also sell A$500 million of new shares in a separate placement to Chinese private equity firm Hony Capital. Hony is already a shareholder and will also be taking part in the rights issue. Santos is also selling a stake in its Kipper gas field to Japan's Mitsui & Co. Ltd. for A$520 million. Santos' multiple deals follow its rejection last month of a full takeover offer from Scepter Partners, backed by Brunei and United Arab Emirates investors.

Back in London, Intercontinental Hotels Group (IHG) - Get Report  dropped more than 4% to 2,660 pence, after denying it was considering the sale or merger of the company. The denial, which came in response to media speculation that the $9.9 billion hotel operator was talking to advisers about joining the consolidation in the sector, reversed much of Friday's 6.2% rise.

And in Germany, tire maker Continental skidded off the road with a report of slower growth in Chinese car production. Continental fell 4.89% at €213.90.

In Asia, Tokyo's Nikkei 225 closed up 1.96% at 19.642.74, while the Topix finished the day up 1.75% at 1,590.97. Hong Kong slipped 0.61% to 22,726.77, while in mainland China, the Shanghai Composite index was up 1.58% at 3,646.88, after the government relaxed restrictions on new IPOs, while the Shenzhen composite was up 1.82% at 2,191.60.