By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Experian led U.K. stocks lower on
Wednesday after pointing out a number of headwinds, while banking
giant HSBC slipped as it reported a fall in first-quarter
profit.
The FTSE 100 index lost 0.3% to 6,776.76, setting it on track
for its lowest close since late April.
Shares of Experian PLC slid 5.3% after the company, which helps
individuals to check their credit rating, said it faces a number of
one-off headwinds including subdued trading in Brazil related to
the World Cup. The challenges will constrain growth in the first
half of the fiscal year, Chief Executive Don Robert said.
HSBC Holdings PLC (HSBC) gave up 1%, after the banking major
reported a fall in profit and revenue for the first quarter as it
carries on with a long-running cost-cutting plan.
Other banks tracked HSBC lower, with shares of Barclays PLC
(BCS) down 2% and Lloyds Banking Group PLC (LYG) off 1.3%.
More broadly, stocks in London tracked an overall downbeat
trading mood in Europe, where increasing risk of military
confrontation in Ukraine hit sentiment. On Tuesday, German foreign
minister Frank-Walter Steinmeier and French President François
Hollande warned Ukraine is close to a civil war after intense
fighting in the eastern part of the country earlier in the
week.
Also on Tuesday, U.S. Secretary of State John Kerry urged Russia
not to sabotage upcoming presidential elections in Ukraine, warning
such an act could be met with further economic sanctions.
China was further in the spotlight, after the HSBC services
purchasing managers index for the country fell to 51.4 in April
from March's 51.9. The decline follows data out earlier in the
week, showing the manufacturing sector contracted more in April
than previously estimated.
Miners, which are sensitive to growth indications from China,
dropped in London on Wednesday. BHP Billiton PLC (BHP) fell 1.3%,
Rio Tinto PLC (RIO) gave up 0.9%, and Glencore Xstrata PLC (GLCNF)
erased 0.6%.
On a more upbeat note in London, shares of Legal & General
Group PLC put on 2.6% after the insurer and fund manager said cash
generation and assets under management rose to record levels in
2014's first quarter.
EasyJet PLC picked up 2.1% after the budget airliner said
passenger traffic rose 10.2% in April, partly due to the timing of
Easter.
J Sainsbury PLC advanced 0.6% after the supermarket chain
reported higher full-year sales and profit.
In IPO news in London, OneSavings Bank PLC said it plans to
raise GBP41.5 million ($69.9 million) in an initial public offering
on the London Stock Exchange.
More must-reads from MarketWatch:
Jim O'Neill: short the euro, watch Apple, sell in May
This Russian empire will crumble just like the last one
Yellen's task: Point to continued low rates without badmouthing
economy
Subscribe to WSJ: http://online.wsj.com?mod=djnwires