London's FTSE 100 weakened as investors dumped airline stocks after a bearish note from HSBC, while CYBG gained after the bank raised its target for cost savings.
British Airways owner IAG fell 4pc to a two-and-a-half-year low and easyJet dropped 2.6pc. HSBC downgraded the stocks after German airline Lufthansa's profit warning this month.
"We are increasingly cautious towards European airlines ... expect many will follow Lufthansa's profit warning," HSBC analysts wrote. They also forecast weakness in long haul and corporate travel demand in Europe.
The FTSE 100 index was 0.3pc lower by 0811 GMT, giving up gains from Tuesday along with other European markets after a dovish policy speech by European Central Bank chief Mario Draghi. The FTSE 250 midcap index was down 0.2pc.
Online takeaway service Just Eat also slipped 2.4pc after a rating cut by UBS.
British American Tobacco, Imperial Brands and Diageo, which get a chunk of their revenue in US dollars, weakened as sterling recovered from five-month lows.
Berkeley fell 2pc after reporting a drop in earnings. Rivals Taylor Wimpey, Persimmon and Barratt also fell.
"Today's results reflect the gradual cooling of the company's performance," wrote CMC Markets analyst David Madden.
Among midcaps, Clydesdale and Yorkshire Banking Group climbed 3.7pc after raising its target for cost savings related to its takeover of Virgin Money.
Insurance and tourism firm Saga slumped 7.3pc to a record low after warning that its tour operations were still being undercut by political uncertainty in the UK.
Contractor Kier Group jumped 10pc, adding to gains from last session, after being hammered this month over a profit warning and restructuring plans.
Comments
Comments are closed for this article.