U.K. Stocks Drop as Obama Authorizes Air Strikes in Iraq

U.K. stocks declined for a third day, closing at their lowest level since April, after U.S. President Barack Obama authorized air strikes against militants in Iraq.

Schroders Plc fell 2.7 percent after Aberdeen Asset Management Plc’s chief executive officer said investors had become too bullish on U.K. fund managers. Catlin Group Ltd. (CGL) climbed 4.3 percent after first-half profit more than doubled.

The FTSE 100 Index (UKX) slid 30.01 points, or 0.5 percent, to 6,567.36 at the close of trading in London. The gauge fell 1.7 percent this week, posting its first back-to-back weekly losses since March. The broader FTSE All-Share Index dropped 0.4 percent today. Ireland’s ISEQ Index fell 0.3 percent, sliding for an eighth day, the longest streak in three years.

Obama said late yesterday that the U.S. will attack militants threatening the Kurdish city of Erbil. He also authorized air strikes against fighters from the group called the Islamic State, which has trapped thousands of people from a minority religious sect on a mountain near the border with Syria. The president said he will not deploy American ground troops in Iraq.

Schroders fell 2.7 percent to 2,213 pence. Aberdeen CEO Martin Gilbert told reporters that analysts have rated the industry too positively. “We have got into a situation where the industry has over-promised and under-delivered,” he said.

Aberdeen’s shares slipped 0.8 percent to 405.3 pence, while Henderson Group Plc, a rival money manager that reported earnings yesterday, dropped 2.4 percent to 222.6 pence.

Catlin rose 4.3 percent to 507 pence. First-half pretax profit rose to $318 million from a year earlier, the insurer said in a statement. That beat the $226 million average estimate of analysts surveyed by Bloomberg.

To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net

To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net Trista Kelley, Will Hadfield

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