FTSE 100 hits two-week low on China banking curbs, oil slide
FTSE 100 fell to a two-week low as Asia-focused banks and miners slid after reports of tighter Chinese offshore banking curbs and weaker oil pressured energy stocks.
The FTSE 100 fell to its lowest level since mid-May on Thursday, down 0.5% at 10,281.65 by 1144 GMT. The mid-cap FTSE 250 eased 0.1% during the same session.
Shares of lenders with significant Asia exposure dropped after reports that mainland Chinese residents faced increased restrictions when opening offshore accounts at major Hong Kong banks. HSBC fell 4.8% and Standard Chartered declined 6.4%.
Asia-focused insurer Prudential fell 6.7%, marking its biggest one-day decline since February. Industrial metal miners were weaker after base metal prices moved lower, with Antofagasta and Rio Tinto each down about 3%.
Crude oil fell by more than 3% after news that Israel and Lebanon had agreed to implement a new ceasefire following US-mediated talks, according to the Trump administration. UK energy majors Shell and BP each lost more than 1% as oil prices retreated.
Advertising group S4 Capital plunged 8.7% after Chairman Martin Sorrell said progress in improving revenue growth and margins had been insufficient, citing ongoing weakness in marketing demand. By contrast, trading platform CMC Markets jumped 15.8% after forecasting annual profit above market expectations.
Data released during the session showed activity in Britain’s construction sector slowed at its fastest pace in six years, with rising inflation and uncertainty linked to the Iran-related conflict cited as factors behind a sharp fall in new work.
The falls across banks, miners and energy names brought the FTSE 100 to its lowest level since mid-May, driven by concerns about tighter offshore banking rules affecting cross-border financial activity and weaker commodity prices.
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