FTSE 100 close: BA, Lloyds, RBS down
A negative open on Wall Street this afternoon threw the Footsie into the red.
The blue-chip index had been in positive territory for most of the day after markets in Asia were given a fillip by South Korea's central bank, which said economic growth accelerated to 2.9% in the third quarter - the fastest since the first quarter of 2002.
But an 86-point fall for the Dow Jones to 9,886 left the FTSE 100 nursing a 50.8-point drop to close on 5,191.7.
The oil majors edged higher, helped by the buoyant price of crude, which although down slightly on the day remained close to last week's 2009 high of $82 a barrel. Tullow Oil was up 10p to 1,271p, BP rose 2.1p to 567.1p, while Royal Dutch Shell lost 0.5p to 1,852p.
The pharmaceuticals sector saw good demand ahead of third-quarter numbers from the sector later this week. Shire got an early boost from news that the US Food & Drug Administration has determined that the firm's key attention deficit disorder treatment, Vyvanse was properly granted five-year market exclusivity.
But shares fell back to stand flat at 1,035p, while AstraZeneca was up 6.5p up at 2,775.5p.
In the household goods sector Reckitt Benckiser was 16p up at 3,082p and Bunzl was the top Footsie riser, 10p up at 661.5p.
British Airways was a big FTSE 100 faller, after the Unite union said cabin crew will be ballotted on whether to strike in a row over new contracts.
Travellers face disruption at Christmas if BA staff vote in favour of a walkout. It's thought the ballot will take place next week.
Moreover, a report in the Financial Times said the airline, along with Iberia and American Airlines, may have to give up take-off and landing slots to satisfy EU conditions for a proposed tie-up.
Lastly, Deutsche Bank downgraded its stance on BA to 'sell' from 'hold'. Shares fell 10.1p to 199.7p.
Financials were the biggest drag on blue-chip sentiment, however, with banks and life insurers the worst performing sectors.
British banks must give breakdowns of bonuses by the end of the week or they will need to use the cash to beef up reserves, the Sunday Times reported quoting Adair Turner, head of Britain's banking regulator.
Meanwhile, retail banks should be stopped from paying big cash bonuses and use the money instead to support new lending according to the text of a speech to be given by the opposition Conservatives' finance spokesman on Monday.
Part-nationalised banks Lloyds Banking Group and Royal Bank of Scotland were the worst off, losing 6.89p to 89.34p and 2.66p to 44.42p respectively, as investors fretted over cash call uncertainties.
Royal Bank of Scotland is planning to scale back its involvement in the government's asset protection scheme, media reports said on Saturday.
Sector heavyweight HSBC lost 12.6p to 686p, hit by a downgrade to 'hold' from 'buy' by Citigroup.
Barclays lost 8.85p to 352.6p afte revealing it is paying £226m for the banking arm of Standard Life, in order to bolster its mortgage and savings business.
For Barclays, the move adds 78,000 mortgages with outstanding loans of £8.8bn and 287,000 savings accounts worth £5.5bn. The sale is at the bottom end of the expected range.
Standard Life's shares fell 3.4p to 226.9p.
Fellow insurer Prudential was off 20p to 613.5p as it also fell victim to a broker downgrade with SG Securities cutting its rating to 'hold' from 'buy' on valuation grounds.
In the FTSE 250 Index, shares in consumer goods firm McBride jumped more than 10% after it reported a 7% rise in revenues amid higher demand for cheaper own-brand household and personal care products and favourable exchange rates.
Shares were 19.2p higher at 219.9p.
Oil giant BP kicks off the UK's third quarter results season tomorrow, before results from heavyweights including rival Royal Dutch Shell and pharmaceuticals company GlaxoSmithKline.
Most watched Money videos
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- Land Rover unveil newest all-electric Range Rover SUV
- Mini unveil an electrified version of their popular Countryman
- Iconic Dodge Charger goes electric as company unveils its Daytona
- How to invest for income and growth: SAINTS' James Dow
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Steve McQueen featured driving famous stunt car in 'The Hunter'
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- How to invest to beat tax raids and make more of your money
- CITY WHISPERS: City PR man Neil Bennett cries fowl after...
- Intermediate Capital Group snaps up leading legal...
- Is the UK stock market finally due its moment in the sun?...
- Coventry Building Society swimming with 'sharks' as it...
- When will Gucci get its house in order? Fashion giant...
- FTSE 100 chiefs claim they are hard-up compared with the...
- It's 'high and buy' from FTSE 100: The more the index...
- Taxpayers could be on the hook for a multi-million-pound...
- FTSE 100 set for boost when Chinese online giant Shein...
- Takeover target Anglo American is forced to defend...
- FIDELITY SPECIAL VALUES: Best of British... fund that...
- Inventor Erno Rubik thought his Cube was so difficult...
- Emerald bond fund owes me £25,000: TONY HETHERINGTON...
- Revitalised corner of Scotland that proves banking hubs...
- MIDAS SHARE TIPS UPDATE: GlobalData proves worldwide...
- MIDAS SHARE TIPS: Premium income doubles and profits rise...
- JEFF PRESTRIDGE: Finally... a tiny bright spot in the...
- Soaraway funds that even beat the mighty Warren Buffet…...