Market stuck in red as HSBC disappoints

London’s premier index was rooted in the red yesterday as investors baulked at trading updates from banking and mining giants.

The FTSE 100 Index closed down 0.89 to 7,246.77, as HSBC slid more than 3% after missing results expectations despite annual profits doubling.

Pre-tax profits jumped 141% to 17.2 billion US dollars (£12.3 billion) in the 12 months to December 31 compared with 7.1 billion dollars (£5.1 billion) a year earlier.

The lender said its focus on the Asian business boosted group profits, while results were also flattered by comparably lower figures in 2016 when it was knocked by moves to offload its Brazilian operation.

Shares were down 23.5p to 737p, with rival lender Lloyds Banking Group dropping 0.1p to 67.9p.

Mining firm BHP Billiton was also enduring a rough ride after posting a plunge in half-year profits.

The firm was the biggest faller on the London market, down 71.6p to 1,490.4p, as attributable profits sank 37% to two billion US dollars (£1.4 bn).

However, underlying earning made for brighter reading, up 14% to $11bn (£7.9bn).

Across Europe, Germany’s Dax climbed 0.8% and the Cac 40 in France lifted 0.6% higher.

On the currency markets ,the pound rose 0.6% at 1.13 against the euro.

HSBC slid more than 3%.