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(Sharecast News) - London's FTSE 100 was 1.1% lower at 10,762.90 in afternoon trade on Monday.
Miners Anglo American and Glencore both fell as copper prices eased.
Barclays was under the cosh following a report the Bank of England is examining whether the bank's traders misrepresented illiquid private credit loans to understate their risk after concerns were raised by an insider.
According to the Financial Times, citing people familiar with the matter, the BoE's Prudential Regulation Authority received a complaint earlier this year about how the bank was recording derivatives used to finance private credit loans. It alleged that the way the bank handled the deals was in breach of the PRA's rules.
It was understood that the complaint centred on Barclays' allocation of total return swaps referencing illiquid private credit loans to its trading book.
Other banks followed suit, with NatWest, Standard Chartered and HSBC also lower.
Imperial Brands was weaker after Jefferies downgraded the shares to 'hold' from 'buy' and slashed the price target to 2,700p from 3,500p.
It said that while IMB has proven proficient at growing value in the combustibles segment, the upcoming sharp, multi-year series of excise taxes in Germany may materially slow growth down.
"History suggests legal cigarette volume declines materially accelerate in such circumstances as the illicit trade grows, driving us to lower our Europe estimates," the bank said.
"We detect a risk that F27 guidance could come below street estimates and see lower re-rating potential."
FTSE 100 - Risers
Marks & Spencer Group (MKS) 413.00p 0.88%
Land Securities Group (LAND) 654.50p 0.69%
The Sage Group (SGE) 1,125.00p 0.36%
Sainsbury (J) (SBRY) 353.60p 0.34%
Pershing Square Holdings Ltd NPV (PSH) 3,814.00p 0.21%
Scottish Mortgage Inv Trust (SMT) 1,547.00p 0.16%
Coca-Cola HBC AG (CDI) (CCH) 4,432.00p 0.09%
Tesco (TSCO) 535.40p 0.07%
easyJet (EZJ) 683.80p 0.06%
Relx plc (REL) 2,913.00p 0.03%
FTSE 100 - Fallers
Anglo American (AAL) 3,901.00p -3.66%
Barclays (BARC) 416.30p -3.63%
WPP (WPP) 400.10p -3.13%
3i Group (III) 2,390.00p -3.04%
NATWEST GROUP (NWG) 647.60p -2.70%
Imperial Brands (IMB) 2,810.00p -2.50%
Glencore (GLEN) 569.20p -2.40%
Kingfisher (KGF) 341.90p -2.32%
Standard Chartered (STAN) 2,077.00p -2.26%
HSBC Holdings (HSBA) 1,394.40p -2.24%
