UK's FTSE 100 Drops to Two-Week Low as Banking and Energy Stocks Weigh
Market Overview and Key Movers
June 4 (Reuters) - UK's FTSE 100 fell to a more-than-two-week low on Thursday, as Asia-exposed lenders dropped on a report of China tightening offshore account rules, while energy stocks eased as crude oil prices fell.
The blue-chip FTSE 100 index dropped 0.5% to 10,281.65 points by 1144 GMT, hitting its lowest level since mid-May. The mid-cap FTSE 250 inched 0.1% lower.
Banking Sector Performance
China-Exposed Lenders
• China-exposed lenders HSBC and Standard Chartered dropped 4.8% and 6.4%, respectively, after a media report that residents of mainland China were facing greater constraints in opening offshore accounts at major Hong Kong banks.
Insurance and Financial Services
• Asia-focused insurer Prudential also dropped 6.7% and was headed for its biggest one-day drop since February.
Other Major Movers
Industrial and Mining Stocks
• Industrial metal miners also lagged, with shares of Antofagasta and Rio Tinto down about 3% each, tracking an initial drop in base metal prices.
Advertising and Trading Platforms
S4 Capital
• S4 Capital slid 8.7% after the ad group's Chairman Martin Sorrell said progress on revenue growth and margin improvement was insufficient as the industry faces a marketing downturn due to global macroeconomic uncertainty.
CMC Markets
• CMC Markets jumped 15.8% after the trading platform forecast annual profit ahead of market views.
Energy Sector and Global Influences
Middle East Developments
• In the Middle East, Israel and Lebanon agreed to implement a new ceasefire after U.S.-mediated talks, the Trump administration said, raising hopes for progress toward ending the wider U.S.-Israeli war with Iran and sending crude oil prices down over 3%.
British Energy Stocks
• British energy heavyweights Shell and BP fell over 1% each.
Economic Data
UK Construction Sector
• On the data front, activity in Britain's construction sector slowed at the sharpest pace in six years last month as economic uncertainty and rising inflation triggered by the Iran war led to a steep fall in new work.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Harikrishnan Nair)
