FTSE slips as banks lead fallers after NatWest boss resigns
The FTSE 100 moved 0.19%, or 14.91 points, lower to finish at 7,676.89.
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Your support makes all the difference.The FTSE 100 took a step back on Wednesday as banking firms saw their shares dented by the fallout from the row over the closure of Nigel Farage’s Coutts account.
NatWest Group was the index’s heaviest faller during the session after Dame Alison Rose stepped down as boss of the state-backed banking giant after admitting a “serious error of judgment” by discussing Mr Farage’s relationship with Coutts, owned by NatWest, with a BBC journalist.
Treasury ministers also held a meeting with banking bosses on Wednesday, when executives committed to the Government’s planned reforms.
NatWest shares finished 9.4p lower at 241.8p, while rivals such as Lloyds – which earlier reported a reported a half-year pre-tax profit of £3.9 billion – and Standard Chartered also finished lower.
London’s top index was also hampered by a fall in profits at mining giant Rio Tinto in a big day for earnings updates.
The FTSE 100 moved 0.19%, or 14.91 points, lower to finish at 7,676.89.
Nevertheless, a number of positive announcements, such as a hefty profit upgrade for Rolls-Royce, meant the index outperformed European peers.
The main European and US markets were lower amid caution ahead of the Federal Reserve’s latest rates decision.
Chris Beauchamp, chief market analyst at IG, said: “Investors have taken some risk off the table this afternoon, and indices are trading lower across the board save for a tiny gain for the Russell 2000.
“Losses have been much sharper in Europe, where poor figures from LVMH have put the CAC40 on the back foot once again, dragging other indices with it.”
Meanwhile, the pound was up 0.28% to 1.293 US dollars ahead of the Fed meeting and was 0.09% higher at 1.167 euros at market close in London.
In company news, engineering giant Rolls-Royce was a strong performer after it said profits for the half-year and current full-year would be significantly above analyst forecasts.
Investors have taken some risk off the table this afternoon, and indices are trading lower across the board save for a tiny gain for the Russell 2000
Shares finished 32.35p higher at 185p after it told shareholders the improvements were driven by a strong first half of 2023.
Ladbrokes parent firm Entain saw shares rise after brokers at Citi said it was “plausible” that US partner MGM could approach the gambling business with another takeover attempt.
Shares in the business closed up 61p at 1,360p.
Dettol manufacturer Reckitt Benckiser was lower on Wednesday after it revealed lower half-year profits despite delivering increased revenues.
Shares in the company were down 64p at 5,878p at the end of trading.
The price of oil slipped back from three-month highs amid caution before the latest Fed announcement.
A barrel of Brent crude oil fell by 0.31% to 83.38 US dollars at the time markets were closing in London.
The biggest risers in the FTSE 100 were Ocado Group, up 191p at 960.4p, Rolls-Royce, up 32.35p at 185p, Entain, up 61p at 1,360p, IAG, up 3.45p at 152.5p, and Vodafone Group, up 1.6p at 77.53p.
The biggest fallers of the day were NatWest Group, down 9.4p at 241.8p, Rio Tinto, down 165p at 5,229p, Glencore, down 12.6p at 469.45p, Anglo American, down 56p at 2,450p, and Diageo, down 57.5p at 3,399.5p.