FTSE 100 movers: Rate fears weigh on banks

UK blue chips were mostly in the red on Monday as investors got in a tizzy as they feared various economic and political possibilities across the Atlantic at the end of last week, sending London-listed financial stocks lower in particular.

With worries about the US Federal Reserve raising rates, this is also the week when the Bank of England is due to meet to discuss monetary policy, which seems to have conspired to give the willies to UK banking investors, with Lloyds Banking Group, Royal Bank of Scotland, Barclays and Standard Chartered leading the declines on the FTSE 100.

While the short-term macroeconomic outlook is expected to supportive for asset quality and loan growth, monetary policy is set to weigh on bank margins for a while yet, with a note from Morgan Stanley on Monday morning suggesting UK banks net interest income will fall circa 2% per annum for the next few years.

Over the weekend, some large Lloyds shareholders also called on the high street lender to strengthen its internal succession plan and address a perceived overreliance on scandal-hit chief executive António Horta-Osório. On Monday, two executives were reported to have departed, as Horta-Osorio looks to reshape, while an attempt to meet targets for cutting costs could see another 3,000 jobs cut as the Spaniard looks to remain at the helm of the bank.

It was also reported that hundreds of businesses are threatening the Financial Conduct Authority with legal action because of delays to a long-awaited report into the activities of RBS's restructuring unit. Lawyers acting for more than 400 companies, which claim they were mistreated by RBS’s Global Restructuring Group have written to the City regulator saying that they plan to launch a judicial review into the handling of the issue, according to the Times.

Marks & Spencer was another faller as it emerged that Laura Wade-Gery, the executive director of multi-channel who relaunched the retailers website, will not return from maternity leave.

Wade-Gery was poached from Tesco in 2011, where she had been the grocer's e-commerce director and was lined up to become commercial director of non-food operations.

Leading the risers was Morrisons ahead of its interim results on Thursday. The supermarket group's new management team already have a reputation for over-delivering and the second quarter's trading expected to have been robust. .

Vodafone was another in what was a lacklustre leaderboard, possibly helped by an encouraging report from financial weekly Barron's that suggested shares in the mobile carrier could rise by a third.

Market Movers

FTSE 100 (UKX) 6,687.58 -1.32%
FTSE 250 (MCX) 17,691.35 -1.13%
techMARK (TASX) 3,435.86 -0.39%

FTSE 100 - Risers

Morrison (Wm) Supermarkets (MRW) 195.00p 1.30%
Shire Plc (SHP) 4,726.00p 0.49%
AstraZeneca (AZN) 4,839.00p 0.42%
Vodafone Group (VOD) 222.10p 0.36%
Paddy Power Betfair (PPB) 8,950.00p 0.34%
Burberry Group (BRBY) 1,256.00p 0.24%
British American Tobacco (BATS) 4,706.50p 0.23%
Reckitt Benckiser Group (RB.) 7,193.00p 0.17%
SABMiller (SAB) 4,388.00p 0.10%
Hikma Pharmaceuticals (HIK) 2,106.00p -0.09%

FTSE 100 - Fallers

Associated British Foods (ABF) 2,796.00p -11.41%
Marks & Spencer Group (MKS) 324.50p -5.56%
Lloyds Banking Group (LLOY) 56.95p -3.98%
Royal Bank of Scotland Group (RBS) 198.50p -3.97%
Standard Life (SL.) 341.30p -3.56%
Barclays (BARC) 168.65p -3.49%
Standard Chartered (STAN) 617.60p -3.45%
Micro Focus International (MCRO) 2,132.00p -3.44%
ITV (ITV) 196.30p -3.25%
BHP Billiton (BLT) 985.00p -3.19%

FTSE 250 - Risers

SVG Capital (SVI) 649.50p 14.65%
Genus (GNS) 1,904.00p 3.48%
IP Group (IPO) 187.60p 3.08%
HarbourVest Global Private Equity Limited A Shs (HVPE) 959.50p 2.29%
NCC Group (NCC) 326.60p 1.74%
JD Sports Fashion (JD.) 1,334.00p 1.68%
Euromoney Institutional Investor (ERM) 1,057.00p 1.54%
Cranswick (CWK) 2,278.00p 1.33%
Dechra Pharmaceuticals (DPH) 1,349.00p 1.12%
Pets at Home Group (PETS) 247.90p 0.98%

FTSE 250 - Fallers

Evraz (EVR) 132.70p -4.87%
Amec Foster Wheeler (AMFW) 550.00p -4.51%
Halfords Group (HFD) 347.70p -4.37%
Ladbrokes (LAD) 143.30p -4.02%
CLS Holdings (CLI) 1,536.00p -3.94%
Henderson Group (HGG) 231.30p -3.75%
Renishaw (RSW) 2,632.00p -3.73%
Hays (HAS) 132.50p -3.50%
G4S (GFS) 232.20p -3.49%
Micro Focus International (MCRO) 2,132.00p -3.44%