By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- The U.K.'s FTSE 100 index moved lower in a choppy session on Monday, with concerns about banks outweighing optimism over better-than-expected U.K. manufacturing data.

The benchmark index dropped 0.3% to 6,525.51, after closing out last week with the biggest weekly advance since February.

On Monday, heavyweight bank HSBC Holdings PLC (HSBC) skidded 1.3% after setting aside around $1.7 billion to cover one-off charges, such as legal settlements and compensation to customers.

Shares of Royal Bank of Scotland Group PLC (RBS) dropped 1.6% after Investec cut the bank to sell from hold.

On a more upbeat note, shares of easyJet PLC added 2.3% after rival budget airliner Ryanair Holdings PLC lifted its full-year profit guidance and reported a rise in second-quarter earnings. Ryanair shares leapt 9.2% in Dublin.

In data news, the U.K. manufacturing purchasing managers index -- a gauge of factory activity -- rose to a three-month high in October, led by stronger domestic demand. The pound (GBPUSD) moved higher after the report, trading at $1.6005, from $1.5999 ahead of the data.

Also read: European stocks pull back

You're invited: A free evening event focusing on investing opportunities in Europe

Will you be in London on Dec. 3? Then you're invited to our MarketWatch Investing Insights event, "The worse Europe gets, the more you should invest"

Governments are in trouble, reform efforts have stalled, unemployment is climbing... the news from the eurozone is bleak. And investors are fleeing. But that's a mistake: The worse the economic data from Europe get, the more you should be buying. Why? Because actions by the ECB will boost asset prices and the stock market in particular. And, big exporters can grow sales. Lower costs and steady sales translate into higher profits and dividends. Join us for an evening of cocktails and conversation to explore these opportunities.

Our panel will be led by MarketWatch Columnist Matthew Lynn, a renowned financial journalist based in London and the author of "Bust: Greece, the Euro and the Sovereign Debt Crisis." He'll be joined by Mark Hulbert, MarketWatch columnist and editor of the Hulbert Financial Digest. This event is free, but RSVPs are required. It will be held Wednesday evening, Dec. 3, in London. For more information or to RSVP, send an email to marketwatchevent@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires