By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Standard Chartered PLC led the FTSE 100
index lower on Wednesday after disappointing comments on full-year
profit, while the broader market tracked losses in the rest of
Europe, where fears of tapering in the U.S. dented the investing
mood.
The benchmark index lost 0.3% to close at 6,509.97 for a fourth
straight day in negative territory.
Shares of Standard Chartered slid 6.5% after the bank in a
pre-close trading update said difficult market conditions are
expected the rest of the year and that income for 2013 will be
broadly flat on 2012. Analysts at Credit Suisse said the statement
was disappointing, with weaker revenues, higher costs and higher
impairments.
Other banks were also lower. HSBC Holdings PLC (HSBC) gave up
1.3%, Barclays PLC (BCS) fell 1.3% and Lloyds Banking Group PLC
dropped 1.6%.
The broader losses in London came as investors feared the U.S.
Federal Reserve could move closer to cutting its monthly asset
purchases after the ADP job report showed that private-sector
employers added a stronger-than-expected 215,000 jobs to the
economy in November. Cheap central-bank liquidity has been one of
the reasons stock markets globally have climbed to multiyear highs
in 2013.
Data were also in the spotlight in the U.K. as the Markit/CIPS
services purchasing managers' index showed the sector continued to
expand in November. The index printed at 60 last month, down from
October's multiyear high of 62.5, but above the 50-level that
separates expansion from contraction.
"The data add to indications that the economy is set to grow by
at least 1.0% in the fourth quarter, enjoying its strongest period
of GDP growth since 2007," said Chris Williamson, chief economist
at Markit, in a note.
"Job creation is surging as firms take on staff in the face of
increasingly buoyant order books. Furthermore, with growth of new
business hitting a record high in November, output and employment
growth could reaccelerate again in December," he added.
Among other notable movers in London, Sage Group PLC jumped 7.3%
after the software firm raised its dividend by 6% and said it is on
track to meet its organic revenue-growth target in 2015.
On a sector basis, mining firms showed the biggest positive
moves. Shares of Rio Tinto PLC (RIO) added 2%, BHP Billiton PLC
(BHP) gained 0.9% and Randgold Resources Ltd. put on 0.6%. Metals
prices were mostly higher.
Shares of Tesco PLC lost 0.5% after the supermarkets chain said
it is performing in line with market expectations, but that
same-store sales declined in the U.K. in the third quarter.
Reckitt Benckiser Group PLC slipped 1% after UBS cut the
consumer-products firm to sell from buy. The analysts said they see
low earnings growth until 2015.
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