Lloyds Banking Group leads London banks lower

| July 18, 2011 | 0 Comments
Lloyds Banking Group leads London banks lower

European equities markets were lower Monday on concerns that the debt crisis there will spread and on investor concerns about banks after JPMorgan Chase said that 20 European banks could need to raise up to €80 billion in new capital after 8 out of 90 banks subjected to stress tests did not pass.

The FTSE 100 was down 1.55 percent to 5,752.81 in London, while the FTSE 250 dropped 1.86 percent to 11,527.8 as banks there were all lower and took the top three spots on the list of decliners on the 100.

Lloyd’s Banking Group (LSE: LLOY) led the 100 and the banking sector lower as it dropped 7.47 percent, while Barclay’s Bank (LSE: BARC) followed with a decline of 7.01 percent and Royal Bank of Scotland Group (LSE: RBS) was down 6.04 percent.

The banking sector was not the only one with no gainers as the chemicals sector, the food and beverage sector, insurers and the telecommunications sector saw no gains on the session, while several sectors, including the energy sector, the media sector, home builders, and the retail sector each saw just one gain among constituents.

The mining sector was mostly lower, but all five of the gainers in the sector were among the five best performers on either the 100 or the 250 and miners led both indexes as gold and silver miner Fresnillo (LSE: FRES) added 2.09 percent to lead winners on the 100 and gold miner Centamin Egypt (LSE: CEY) was the best performer on the 250 as it gained 4.2 percent.

The worst performer on the 250 was automobile retailer Inchcape (LSE: INCH), which was down 8.18 percent as auto-related shares fell all across Europe.

The best performer out of two gainers in the travel and leisure sector was casino operator and online gambler Rank Group (SLE: RNK), which added 1.79 percent after Hong Kong-based holding company Guoco Group (SEHK: 0053) said it will maintain its 74.5 percent stake in Rank and Rank said it would remain listed after Guoco bid 150p per share for the shares it does not own, which was below the day’s close for Rank at 153.7p.

The FTSE Eurofirst 300 was down 1.59 percent to 1,069.66 while the IBEX fell 1.44 percent to 9,347.8, the Dax was 1.55 percent lower to 7,107.92 and the CAC-40 dropped 2.04 percent to 3,650.71, with just gainers each on the IBEX and the CAC-40 and only 3 gains on the Dax.

Markets in Asia and the Pacific region were lower as investors were worried about exporters as the 2 August deadline for the US to make a decision about raising the debt ceiling.

Australian markets declined with the S&P/ASX200 down 0.03 percent to 4,472 while the Sydney Ordinaries dropped 0.06 percent to 4,539.9 as Sydney-listed shares of News Corp (ASX: NWS) were 4.1 percent lower as independent directors were reported to be considering whether the company needs new leadership in light of the phone-hacking scandal in the UK.

The Sensex was down 0.3 percent to 18,507 in India, the Shanghai Composite fell 0.12 percent to 2,816.69, Singapore’s Straits Times Index was 0.17 percent lower to 3,078.95, the Hang Seng dropped 0.32 percent to 21,804.8 in Hong Kong, Taiwan’s Taiex was down 0.42 percent to 8,538.57 and South Korea’s Kospi was 0.69 percent lower to 2,130.48.

Tokyo’s markets were closed in observance of Marine Day.

New York equities markets were lower on concerns about the inability of US legislators to reach an agreement regarding the debt ceiling and on worries about the debt crisis in Europe, with the Dow Jones Industrial Average down 1.18 percent to 12,332 in midday trade, while the S&P 500 had dropped 1.27 percent to 1,299.46 and the Nasdaq Composite was 1.46 percent lower to 2,749.16.

Crude oil prices were lower on the debt concerns and as the US dollar strengthened, with August contracts for West Texas Intermediate crude down $2.05 to $95.19 per barrel at midday on the New York Mercantile Exchange, while Brent crude had dropped $1.28 to $115.98 per barrel on the ICE Futures Europe exchange in London.

The stronger dollar did not keep gold and silver from gaining, however, as gold was up $16.40 to $1,606.50 per troy ounce in New York trade and silver added $1.40, a gain of 3.59 percent, to $40.48 per troy ounce, but copper dropped half a cent to $4.41 per pound.

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