By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.K. stocks moved higher Friday, with
banking issues advancing on the prospect of a settlement between
major financial firms and an industry regulator.
The U.K.'s FTSE 100 index ended up 0.2% to 6,649.39, reversing a
loss as bank stocks strengthened. The move came after The Wall
Street Journal reported the U.K.'s Financial Conduct Authority has
spoken with six major banks about a potential settlement of a
long-running investigation into possible manipulation of currency
markets.
People familiar with the matter said the FCA has spoken with
executive and lawyers at Barclays PLC, HSBC Holdings PLC, Royal
Bank of Scotland Group PLC, as well as Citigroup Inc. (C), J.P.
Morgan Chase & Co. (JPM) and UBS AG .
In London, shares of HSBC climbed 0.6%, Lloyds Banking Group PLC
(LYG) added 0.6% and RBS picked up 0.3%.
But pressure remained on shares of Sports Direct International
and supermarket chain Tesco PLC, whose stock was facing its worst
weekly performance in more than two years.
Sports Direct dropped 2.7%, extending Thursday's loss of 3.4%.
The retailer, under owner Mike Ashley's direction, made a 43
million pound ($70.1 million) bet via a put option that shares of
embattled Tesco will rise, it said.
Shares of Tesco lost 0.5%. The shares skidded 17% over the week
because of a revelation Monday that an accounting error means its
profit forecast was overestimated by GBP250 million. That is the
stock's biggest weekly fall since January 2012.
Off the FTSE 100, De La Rue PLC shares stumbled 34% after the
bank-note printer, whose customers include the Bank of England,
issued a profit warning for the year, saying business conditions
"have deteriorated".
Read about more big European stock moves here.
For the week, the FTSE 100 lost 2.8%. Stocks on Thursday were in
part hurt after BOE Governor Mark Carney said the time for an
interest-rate hike is moving closer. Such a move could come as
early as next year, economists have said.
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