News of mis-selling costs at Lloyds TSB Group this morning knocked the stuffing out the FTSE 100, ac...
News of mis-selling costs at Lloyds TSB Group this morning knocked the stuffing out the FTSE 100, accompanied by a downgrade from Moody's ratings service for Aviva, making the entire insurance sector suffer again.
The benchmark FTSE 100 Index shed 43.7 points or 1.1% to 4031.7 after Lloyds TSB and Aviva posted six of the index's 10 biggest point losses.
Lloyds TSB is reported to have been fined for mis-selling endowments through Abbey Life, as well as declaring it needs to set aside £205m for insurance liabilities and losses from loans.
Aviva fell 18.5 p or 3.5% to 512.5p because analysts believe further market falls will damage profits.
Prudential also fell 16.5p or 3.2% to 499p and Legal & General Group lost 2.25p or 2% to 109p.
International Greetings, the makers of stationery, added 14p or 7.2% to 207.5p, thanks to a 44% rise in first-half profits and cost cutting.
Rexam, makers of soft drinks cans, added 14.75p or 3.8% to 402.5p as the company now expects its position to improve.
And Stagecoach rose 3p or 16% to 21.75p as it is now looking to sell part of its US units and the taxi business.
In Asia, stocks slid, particularly in Japan, after Hewlett Packard cut its sales forecast in the US yesterday. The Nikkei lost 2.2% to 9006.73 and South Korea's Kospi index had its largest slump in almost two months, falling 3%. But all markets are suffering.
Taiwan's TWSE Index also dropped 1.4% and Hong Kong's Hang Seng index had its biggest slump in more than two months as mobile phones investor Hutchison Whampoa, fell.
Benchmarks in Singapore, Australia, New Zealand, Indonesia, India and the Philippines declined, while indices gained in Malaysia, Thailand and China.
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