(Reuters) -Britain's FTSE 100 was flat on Friday, despite momentarily scaling to an all-time intraday high, as defence stocks weighed ahead of crucial U.S-Russia talks regarding a potential resolution
Financial Shares Weigh Down London Stocks Following StanChart Probe Call
Impact of US Lawmaker's Call for Investigation
(Reuters) -British stock indexes were led lower by financial shares on Friday after a U.S. lawmaker called for an investigation into Standard Chartered bank, pointing to sanctions violations.
Market Reaction to Financial Sector Decline
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.
Sector Performance Overview
The blue-chip FTSE 100 index, which includes the lender, ended 0.4% lower despite reaching a record intraday peak earlier in the session.
Aerospace and Defence Sector
That snapped a four-day winning streak, though the index still managed to conclude the week with modest gains of 0.5%.
Energy Sector Insights
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 U.S. 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. [O/R]
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. [MET/L]
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.
($1 = 0.7379 pounds)
(Reporting by Ragini Mathur in Bengaluru; Editing by Vijay Kishore and Elaine Hardcastle)
