FTSE 100 slips as bank and oil shares slump

The London market swung into negative territory as shares plunged at Lloyds Banking Group and Royal Dutch Shell.

The FTSE 100 index was down 29.4 points to 6,721.1 as Lloyds slumped after announcing swingeing job cuts and branch closures.

Shares were off more than 5% or 3.3p to 52.5p as it moved to cut 3,000 jobs and shut 200 branches.

Shares in Royal Dutch Shell B were down 53.5p to 2,051.5p.

The price of oil remained under pressure, falling 1.2% to 42.94 US dollars a barrel, amid fresh concerns over an emerging global supply glut.

Away from the top tier, the FTSE 250 remained close to erasing its post-Brexit vote losses despite slipping 13.6 points to 17,252.3 – just shy of its closing figure of 17,333.51 on June 23.

The mid-cap index – seen as a better barometer for the health of the UK economy – took a hammering following Britain’s vote to leave the EU, sliding 7% to 16,088.1 on June 24.

On the currency markets, the pound was down 0.8% against the euro at 1.184 euros, while sterling slipped 0.5% against the dollar at 1.314 US dollars.

In stocks, Rolls-Royce was in the ascendancy after boss Warren East pledged up to £200 million in cost savings by 2017 and swung the axe on 400 top jobs.

Shares at the engine maker were up more than 13% or 99p to 831p.