Oil Firms, Banks Bruise FTSE 100

Banks dropped in London on Wednesday after a commission called for sanctions for bad bankers, while oil firms on the decline put further pressure on the U.K. benchmark.

The FTSE 100 index  dropped 0.3% to 6,356.93.

Shares of HSBC Holdings PLC    lost 0.9% after the Hong Kong Monetary Authority Tuesday said it was investigating HSBC and other banks over the possible rigging of local benchmark interest rates.

Other banks were also on the decline as a U.K. parliamentary commission called for criminal sanctions for incompetent bankers in a review of British banking culture.

Lloyds Banking Group PLC   slipped 0.3% and Standard Chartered PLC  fell 0.2%.

Shares of Aggreko PLC  dropped 3.3% after UBS cut the temporary-power-solutions firm to neutral from buy. The analysts said a weaker power-project environment coupled with U.S. and Australian dollar exposure present headwinds.

Oil firms further dropped, ignoring a rise in oil prices. Shares of BP PLC   lost 0.8%, BG Group PLC  dropped 0.6% and Royal Dutch Shell PLC   slipped 0.1%.

Mining firms, however, took a cue from mostly higher metals prices. Rio Tinto PLC    gained 2.1%, BHP Billiton PLC    added 0.7% and Fresnillo PLC  rose 0.4%.

National Grid PLC  picked up 0.8% after Bank of America Merrill Lynch lifted the utility firm to buy from neutral.

Source : Marketwatch