By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- After a choppy session, the U.K.'s FTSE
100 index fell sharply on Monday, with concerns about banks and oil
firms outweighing optimism over better-than-expected U.K.
manufacturing data.
The benchmark index dropped 0.9% to close at 6,487.97, marking
its first loss in five days. Last week, the FTSE closed with the
biggest weekly advance since February.
On Monday, heavyweight bank HSBC Holdings PLC (HSBC) skidded
1.8% 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 2%
after Investec cut the bank to sell from hold.
Oil firms were also lower, as oil prices declined. BP PLC (BP)
lost 1.2%, Royal Dutch Shell PLC (RDSB) fell 1.3% and BG Group PLC
erased 0.4%.
On a more upbeat note, shares of easyJet PLC added 2.7% and
International Consolidated Airlines Group SA (ICAGY) gained 1.3%
after rival airliner Ryanair Holdings PLC lifted its full-year
profit guidance and reported a rise in second-quarter earnings.
Ryanair shares leapt 7.7% 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.
Also read: European stocks pull back
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