Business

FTSE 100 weighed down by banks

London stock brokers (file photo) Image copyright AFP

(Close): London's leading shares lost ground on Wednesday, adding to the previous session's hefty falls.

The FTSE 100 closed down 84.87 points, or 1.4%, at 5,837.14.

Bank shares were among the biggest losers, with Barclays down 4.7%, Standard Chartered down 4.3% and HSBC 3.9% lower.

BP lost another 0.8% after losing 8.8% on Tuesday on news its underlying profit fell 51%, despite a sharp rise in the price of oil.

Brent crude rose more than 5% to $34.46 a barrel, while US light crude was up almost 6% at $31.65.

Despite the rise, oil prices have fallen more than 70% since mid-2014, hit by the slowing global economy, the strong US dollar and oversupply.

On the currency markets, the pound strengthened against the dollar after encouraging PMI service sector data was released. It was up more than a cent-and-a-half at $1.4575, but was down two-tenths of a cent against the euro at €1.3182.