RBS and IAG drag Footsie well into red

The London market failed to bounce back yesterday as investor fears over an impending US fine sent shares in RBS tumbling.

The FTSE 100 index closed down 7.98 points to 7,244.41, with RBS unable to string together a rally despite reporting a bottom-line profit for the first time in a decade.

Shares were down 4 per cent, or 13.6p, to 268.4p.

Elsewhere in UK stocks, British Airways owner International Consolidated Airlines Group (IAG) dived into

the red as traders demanded further signs of underlying growth.

Shares sank 35.4p, to 587.2p, despite profits soaring 15 per cent in 2017 as the group benefited from a drop in fuel costs and strengthening economies in North and South America.

Telecoms giant BT enjoyed a brighter session, finishing as the top flight’s biggest riser after Ofcom stopped short of regulating BT Openreach’s fastest wholesale superfast broadband products.

The group climbed 11.7 p to 244.1p, as the communications watchdog drafted new rules which will force BT’S Openreach to open its existing telegraph poles and underground tunnels to rivals hoping to lay cables in areas that might otherwise require digging works. It means fibre could be installed in some streets in a matter of hours, while the upfront costs could be slashed by up to 50 per cent.