U.K. Stocks Retreat From Three-Week High as Lloyds, RBS Declineby
A drop in bank shares weighed on U.K. equities after Friday’s rally pushed the FTSE 100 Index to its highest level in three weeks.
The benchmark gauge of large U.K. companies fell 0.2 percent at the close, paring losses of as much as 0.4 percent after better-than-forecast services data sent the pound rallying, hurting exporters’ profit prospects. Volume was about 26 percent lower than the average of the past 30 days, with U.S. markets closed for a holiday.
Among stocks moving on corporate news, Lloyds Banking Group Plc and Royal Bank of Scotland Group Plc slipped as Deutsche Bank AG recommended selling the shares on the potential for Brexit to damage their earnings. Tesco Plc lost 1.3 percent after rival grocer Wm Morrison Supermarkets Plc said it will cut the price of essential meat and poultry products.
Royal Dutch Shell Plc advanced with crude as Russia and Saudi Arabia agreed to work together to stabilize the global oil market.
The FTSE 250 Index of mid-cap shares added 0.1 percent, closing at its highest level since June 2015, while the FTSE Small Capitalisation Index Ex Investment Trusts gained 0.4 percent to a second consecutive record. The regional Stoxx Europe 600 Index was little changed.