By Sara Sjolin and Carla Mozee, MarketWatch
HSBC lands after broker upgrade
LONDON (MarketWatch) -- The U.K.'s FTSE 100 suffered its worst
loss in nearly five months Tuesday, with mining and oil firms
battered along with commodity prices. Prudential shares were also
hit as the insurer is set to lose its CEO.
The FTSE 100 index fell 2.5% to 6,702.84, marking a third
consecutive decline and largest percentage decline since Oct. 15,
according to FactSet data. The benchmark has been weighed in part
by losses in the broader European stock market , where focus has
been on Greece and whether the country will agree on a reform
program with its international lenders, a prerequisite for
receiving more financial aid.
Mining and energy stocks traded in London headed south, with
dollar-denominated metals and oil prices
(http://www.marketwatch.com/story/oil-prices-hanging-on-fresh-supply-data-2015-03-10)
crunched by the surge in the U.S. dollar
(http://www.marketwatch.com/story/dollar-hits-fresh-multiyear-highs-against-euro-yen-2015-03-10)(DXY)
against its rivals. The dollar has been running higher as it
appears the Federal Reserve will raise interest rates this year, in
contrast to other central banks worldwide, including the European
Central Bank and the Bank of Japan.
In the oil and gas group, BG Group PLC fell 7.4%, Tullow Oil PLC
erased 7%, Royal Dutch Shell PLC (RDSB) fell 4.8% and BP PLC (BP)
shaved off 4%.
Among miners, Antofagasta PLC dropped 5.5%, BHP Billiton PLC
(BHP) lost 4.7% and Rio Tinto PLC (RIO) gave up 2.8%.
Prudential PLC slid 3% after the insurer confirmed that chief
executive Tidjane Thiam will be leaving after six years
(http://www.marketwatch.com/story/prudential-confirms-ceo-to-leave-as-profit-rises-2015-03-10-34851644)
at the helm to become the CEO of Credit Suisse Group AG (CS).
Shares of Credit Suisse jumped 7.8%.
HSBC Holdings PLC (HSBC) shares turned lower, losing 1.2%. They
had gained earlier in the session after Goldman Sachs lifted the
heavyweight bank to buy from neutral. The Goldman analysts said
HSBC is a key beneficiary of the recent strengthening in U.S.
dollar rates and that the current valuation makes the bank a good
buying opportunity.
Only four stocks on the benchmark finished higher, with Standard
Life PLC rising 1% and Shire PLC gaining 0.7%. EasyJet PLC picked
up 0.7% and BAE Systems PLC edged up 0.1%.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires