Banks rally but mining stocks slide
The banking sector shrugged off the impact of credit ratings downgrades but global slowdown fears saw miners sink as much as 5%.The FTSE 100 Index fell 52.7 points to close on Friday at 5513.7 as Thursday's bleak economic data from the US and China continued to hit sentiment.
Heavily weighted commodities companies were the worst impacted, with Fresnillo the biggest faller, down 74p to 1418p.
However, Moody's review of 15 global banks failed to rattle the financial sector, with Lloyds and HSBC on a shortened risers board in the UK, while US banks also surged ahead.
Moody's downgraded Barclays, Royal Bank of Scotland and HSBC but the banks hit back, insisting they were strong enough to withstand financial shocks, while RBS called the review "backward looking".
RBS was down 0.1p at 243.2p as it battled major technical problems affecting its NatWest subsidiary, while Barclays was 1.6p lower at 200.7p. But HSBC lifted 3.1p to 562.3p and Lloyds Banking Group rose 0.2p to 31.4p after the taxpayer-backed business avoided making it on to the list of Moody's major downgrades, although its long-term rating was lowered by one notch.
Despite hefty falls over the past couple of days, London's leading shares index still finished the week more than half a percent higher.
The Dow Jones Industrial Average was led 0.5% higher by banks as the London market closed as it recovered from a 2% fall on Thursday triggered by worrying economic data. But in European markets, Germany's Dax and France's Cac-40 were down 1.3% and 0.7% respectively.
The pound was down against the euro at 1.24 after the single currency was boosted as leaders of the biggest four eurozone economies discussed plans for a 130 billion euro (£104 billion) growth package. Sterling was also down against the dollar at 1.56.
Oil prices regained their earlier losses but Tullow Oil still dropped 50p to 1431p, while BP was 4.9p lower at 407.3p.
RBS was down 0.1p at 243.2p as it battled major technical problems affecting its NatWest subsidiary, while Barclays was 1.6p lower at 200.7p. But HSBC lifted 3.1p to 562.3p and Lloyds Banking Group rose 0.2p to 31.4p after the taxpayer-backed business avoided making it on to the list of Moody's major downgrades, although its long-term rating was lowered by one notch.
Despite hefty falls over the past couple of days, London's leading shares index still finished the week more than half a percent higher.
The Dow Jones Industrial Average was led 0.5% higher by banks as the London market closed as it recovered from a 2% fall on Thursday triggered by worrying economic data. But in European markets, Germany's Dax and France's Cac-40 were down 1.3% and 0.7% respectively.
The pound was down against the euro at 1.24 after the single currency was boosted as leaders of the biggest four eurozone economies discussed plans for a 130 billion euro (£104 billion) growth package. Sterling was also down against the dollar at 1.56.
Oil prices regained their earlier losses but Tullow Oil still dropped 50p to 1431p, while BP was 4.9p lower at 407.3p.
© 2013 Press Association