London’s benchmark index reached a two-week low on Friday, impacted by declines in oil majors and significant lenders that participated in a global selloff of financial stocks amid worries regarding the stability of U.S. regional banks. The benchmark FTSE 100 fell 1.3% to 9,310 points as of 1017, while the domestically focused FTSE 250 dropped 1.6% to 21,643.

Among U.S. regional banks, Zions Bancorporation disclosed a $50 million hit from two loans from its California unit, while Western Alliance said it had initiated a lawsuit alleging fraud by Cantor Group V, LLC, fuelling worries about credit quality. Futures indicated a softer opening on Friday, subsequent to Thursday’s decline. On the FTSE 100, oil majors BP and Shell declined 2.7% and 0.9%, respectively, exerting significant downward pressure on the index, as a global risk-off sentiment adversely impacted oil prices. Where as –

• The index of the banking sector sheds nearly 3%.
• HSBC, Barclays, and Standard Chartered fell 1.9%, 5.3%, and 4.6% respectively.
• The investment banks and brokerages index fell 2%; brokerage ICG shed 6.4%,
  marking the largest decline in the FTSE 100.

Data released on Thursday indicated that Britain’s economy experienced a return to growth in August. In a separate statement, the International Monetary Fund indicated that the UK’s economy is projected to achieve the second-highest growth rate among the Group of Seven nations in 2025, following the United States. The aerospace and defense index dropped 3.1%, tracking losses in their European counterparts. Among individual stocks, Pearson gained 5.3% to the top of FTSE 100 as the education company expects stronger sales growth in the fourth quarter.
Man Group opens new tab gained 4% after the hedge fund’s growth in assets under management surpassed expectations. FTSE 100 reaches a two-week low amid banking sector concerns