UK bank stocks fall to four-month low
British banking shares fell to their lowest level in more than four months on October 20 amid concerns about interest rates and elevated oil prices.
Tthe banking sector index declined nearly 2%. Shares of HSBC, Lloyds Banking Group and NatWest Group fell between 1.6% and 2.3%. The FTSE 100 dropped 0.8% to 10,680.25, while the FTSE 250 lost 1%.
Higher energy costs and expectations of further Bank of England tightening weighed on market sentiment. Domestically focused midcap companies remain particularly sensitive to financing costs and weaker economic growth.
Gains in healthcare and defensive consumer sectors helped limit broader index losses. The decline in banking stocks reflects continued investor caution toward the UK economic outlook.
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