London stocks dragged down by financials

LONDON: British stock indexes were led lower by financial shares on Friday after a US lawmaker called for an investigation into Standard Chartered bank, pointing to sanctions violations.

Elise Stefanik, a Republican representative from New York, requested a special attorney probe into Standard Chartered, sending its shares down 7.2% by the close. The blue-chip FTSE 100 index, which includes the lender, ended 0.4% lower despite reaching a record intraday peak earlier in the session.

That snapped a four-day winning streak, though the index still managed to conclude the week with modest gains of 0.5%.

Other financial stocks also took a hit, with a gauge of UK’s banks down 1.9%, the most among sectors. Still, it gained 0.4% for the week and 31.5% this year.

Adding to market pressure, the aerospace and defence sector declined 1.7% ahead of a scheduled high-stakes meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska later in the day.

Investors will be watching for any signs of a credible peace deal, with any substantive outcomes likely setting the market tone for the coming week. Despite Friday’s decline, the UK defence sector has advanced 71% this year, bolstered by the government’s increased defence spending commitments. The sector closed the week 0.7% higher, even as peace efforts in the Ukraine conflict were gaining momentum.

The energy sector, up 0.8%, was also in focus as any ceasefire could result in the easing of sanctions on Russian oil exports, potentially placing downward pressure on global crude prices.

Industrial metal miners provided some support, rising 1.4%, as weak economic data from key commodities consumer China fueled hopes that it would spur Beijing to unleash more stimulus measures. The midcap index fell 0.2% after rising as much as 0.3% in the session, with financial stocks leading the decline. The index was 0.1% down for the week.

Bytes Technology was the top performer on the index, rising 7.9% as the IT firm announced a 25 million pounds ($33.89 million) share repurchase program.