U.K. Stocks Fall to Two-Week Low as Bank Drop Outweighs Minersby
U.K. stocks retreated, erasing an earlier advance, as banks followed their European peers lower, outweighing gains among mining companies.
Barclays Plc and HSBC Holdings Plc dropped at least 1.2 percent, leading a gauge of U.K. lenders lower, as stress-test results showing most of Europe’s banks would keep adequate levels of capital in a crisis failed to restore faith in the sector. Royal Bank of Scotland Group Plc slid 1.7 percent. British Airways Plc parent IAG SA fell 1.3 percent as Fitch Ratings said the airline was among the most exposed to Brexit damage.
Commodity producers rose as metals climbed, with BHP Billiton Ltd. adding 2 percent and Rio Tinto Group gaining 1 percent. Associated British Foods added 1.7 percent after Deutsche Bank AG raised its rating on the owner of the Primark budget-clothing chain to buy.
The FTSE 100 Index slipped 0.5 percent to 6,693.95 at the close of trading in London, its lowest level since July 15. It had risen as much as 0.7 percent. Shares were also hurt after a Purchasing Managers’ Index showed U.K. manufacturing shrank more than initially forecast in July, suffering its biggest drop in more than three years. The FTSE 250 Index of mid-sized firms lost 0.8 percent today.