(Reuters) - London’s FTSE 100 index ended lower on Tuesday, giving up earlier gains as the mood soured in response to worries over U.S.-China trade and as major British banks fell after the Bank of England issued a new plan to handle potential banking crises.
The mid-cap FTSE 250 .FTMC fell 0.6%, dragged down in part by a near 10% drop in Virgin Money-owner CYBG CYBGC.L.
The blue-chip index followed Wall Street lower after U.S. President Donald Trump warned China not to wait for the 2020 U.S. presidential election to make a trade deal.
Corporate earnings were the main drivers behind most of the major stock moves on both UK indexes.
British Gas parent Centrica (CNA.L), whose earnings have been hit by a national cap on energy prices, dropped 19% to its lowest level in more than two decades as it cut its dividend and said its chief executive would step down.
“The company needs a new leader to take a grip of things... It’s in the middle of a big changes in the sector and a significant restructuring so slashing the dividend whilst cash flow is uncertain is absolutely vital,” Markets.com analyst Neil Wilson said.
Fresnillo (FRES.L) fell nearly 18% after its profit dropped by more than two-thirds in the first half of the year due to a drop in production and higher costs.
Shares in some major exporting companies were unable to capitalise on sterling’s plunge on no-deal Brexit worries.
Mid-cap CYBG slipped 9.6% after it forecast its net interest margin would be at the lower end of its earlier view.
British Airways owner IAG (ICAG.L) fell 5.4% on the main index, while mid-cap peers Wizz Air (WIZZ.L) and easyJet (EZJ.L) shed 4.1% and 5.6% respectively, after Germany’s Lufthansa (LHAG.DE) warned of a challenging European market in the near term.
Reporting by Shashwat Awasthi in Bengaluru; Editing by Saumyadeb Chakrabarty and Jane Merriman