FTSE 100 Slides as HSBC Shares Stumble; Banking Sector Feels the Pinch
The FTSE 100 fell by 0.4% due to a significant drop in HSBC shares, impacting the banking sector. The market also faced pressure as Lloyds announced plans involving Schroders and Aston Martin shares fell sharply. Meanwhile, the construction sector saw positive performance, driven by Volution Group's strong results.
The FTSE 100 retreated from its record high on Thursday, pressured by a sharp decline in HSBC shares. HSBC fell 5.4%, marking its steepest drop in over six months, after announcing plans to fully acquire Hang Seng Bank in a HK$106.1 billion deal.
Investor confidence wavered as the broader banking sector dipped 3.7%. Lloyds Banking Group and Close Brothers declined 3.3% and 12.8%, respectively, after revealing potential financial liabilities linked to a motor finance scandal. Additionally, Lloyds planned to buy out Schroders in a joint venture.
Performance in the automotive sector was equally troubled, with Aston Martin and European auto stocks seeing sharp declines. Meanwhile, the construction sector had a positive day, bolstered by Volution Group's exceptional financial results, contributing to a modest rise in the sector.
(With inputs from agencies.)
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