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
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Blue Whale fund manager on the best of the Magnificent 7
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- How to invest for income and growth: SAINTS' James Dow
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Mail Online takes a tour of Gatwick's modern EV charging station
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- Mercedes has finally unveiled its new electric G-Class
- My neighbour has started keeping bees. Is there anything...
- America's latest inflation figures are a gift for Andrew...
- The £60bn foreign takeover frenzy: Royal Mail just the...
- MARKET REPORT: Bumper blue chips send Footsie to another...
- The age you can access work and private pensions will...
- Czech billionaire Daniel Kretinsky ups bid for Royal Mail...
- Anglo to sell coking coal arm for £4.75bn in bid to...
- Trading blows over Israel: How global commerce is being...
- I'm starting a new anti-FIRE movement called CHILL, says...
- British tech firm Raspberry Pi eyes £500m London float in...
- David Cameron's mother-in-Law quits luxury furniture firm...
- EasyJet boss to step down as airline reveals it raked in...
- BT Group ups dividend despite losing almost...
- Tech firm Raspberry Pi confirms plans to IPO in London
- Tui Group losses narrow thanks to record second quarter
- Young people most likely to get in debt with loan sharks,...
- Loan firm Moneybarn tried to take my car - but I don't...
- We started investing for our first daughter when she was...