Business

FTSE 100 falls as bank shares slide

City traders Image copyright Getty Images

(Close): The London market fell as shares in the banking sector remained under pressure.

At close, the FTSE 100 index was down 48.55 points, or 0.73%, at 6,645.40, with Barclays and RBS falling by 3.57% and 1.75%.

Sentiment in the banking sector was hit by news from Germany's Commerzbank, which saw its shares fall 8% after warning of lower profits this year.

Travis Perkins shares slid 0.71% after Brexit "uncertainty" hit demand.

The builders' merchant said it had experienced "weaker demand in the run up to and immediately following the referendum".

However, it added: "In our view it is too early to precisely predict end-market demand and we will continue to monitor the lead indicators we track and will react accordingly."

But it was a better day for insurer Direct Line with its shares jumping 12.62%. The company reported a 5% drop in half-year pre-tax profits to £298.5m, but its results still beat expectations and it also announced a special dividend payment of 10p a share.

On the currency markets, the pound rose 1.13% against the dollar to $1.3327 and was 0.49% higher against the euro at €1.1866.