London’s top-flight index slid into negative territory as investors pulled out of financial stocks amid mounting concerns over the health of Deutsche Bank.
The FTSE 100 Index closed down 10.37 points at 6,807.67 when stumps were pulled at 4.30pm, as London-listed lenders were dragged lower by the negative sentiment surrounding the German bank. Deutsche faces a $14 billion fine proposed by the US Department of Justice (DoJ) linked to mortgage-backed securities.
The bank closed down 0.4 per cent at 10.51 euros on Germany’s Xetra exchange, while Royal Bank of Scotland and Barclays dropped 2.9p to 174.6p and 2.2p to 165.9p respectively in London.
The UK’s premier index swung into the red after pushing higher at the beginning of the session when polls from across the Atlantic suggested US presidential candidate Hillary Clinton had “won” the overnight televised debate with Republican nominee Donald Trump.
It comes after more than £23bn was wiped off UK blue-chip stocks on Monday as the index was pulled lower by financial stocks and renewed fears of a Trump presidency.
Brent crude sank 3.4 per cent to $45.73 a barrel today after Saudi Arabia and Iran poured cold water on hopes of securing an OPEC oil deal to curb output at a meeting in Algeria this week.
The move dealt a blow to Royal Dutch Shell, which emerged as one of the biggest fallers on the market, dropping more than 2 per cent or 42.5p to 1,882.5p on the UK market.
Elsewhere, shares in Plumb Center owner Wolseley sank after it announced plans to axe up to 800 jobs as part of a restructuring that will see it shut 80 branches and a distribution centre.
The firm dropped 56p to 4244p after it saw a sharp slowdown in growth in the UK market. Tour operator Thomas Cook was also trading lower after it said bookings remained under pressure as the travel market continues to be hit by recent terror attacks.
The holiday giant revealed that while demand from British sun-seekers was robust over the summer, with bookings up 1 per cent, sales were hit hard in Germany and across Continental Europe.
Shares fell 0.2p to 69.8p. However, retailer Card Factory climbed 8.4p to 310.5p as it increased revenues and profits despite store sales taking a hit from slowing footfall on Britain’s high streets.