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UK's FTSE 100 Falls to 2-Week Low; Bank, Energy Stocks Drag

June 4 (Reuters) - UK's FTSE ​100 fell to a more-than-two-week low on Thursday, as Asia-exposed ‌lenders dropped on a report of China tightening offshore account rules, while energy stocks eased as crude oil prices fell.

The blue-chip FTSE 100 index dropped ​0.5% to 10,281.65 points by 1144 GMT, hitting its lowest ​level since mid-May. The mid-cap FTSE 250 inched 0.1% lower.

  • China-exposed ⁠lenders HSBC and Standard Chartered dropped 4.8% and 6.4%, respectively, after a media ​report that residents of mainland China were facing greater constraints in opening ​offshore accounts at major Hong Kong banks.

  • Asia-focused insurer Prudential also dropped 6.7% and was headed for its biggest one-day drop since February.

  • Industrial metal miners also lagged, with ​shares of Antofagasta and Rio Tinto down about 3% each, tracking ​an initial drop in base metal prices.

  • S4 Capital slid 8.7% after the ad group's ‌Chairman ⁠Martin Sorrell said progress on revenue growth and margin improvement was insufficient as the industry faces a marketing downturn due to global macroeconomic uncertainty.

  • CMC Markets jumped 15.8% after the trading platform forecast annual profit ahead of market views.

  • In ​the Middle East, ​Israel and ⁠Lebanon agreed to implement a new ceasefire after U.S.-mediated talks, the Trump administration said, raising hopes for progress ​toward ending the wider U.S.-Israeli war with Iran and ​sending crude oil ⁠prices down over 3%.

  • British energy heavyweights Shell and BP fell over 1% each.

  • On the data front, activity in Britain's construction sector slowed at the ⁠sharpest pace ​in six years last month as economic ​uncertainty and rising inflation triggered by the Iran war led to a steep fall ​in new work.

Reporting by Shashwat Chauhan in Bengaluru; Editing by Harikrishnan Nair

Source: Reuters


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