LONDON MARKETS: Banks Knock FTSE 100 Lower

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- The U.K.'s FTSE 100 index moved lower in a choppy session on Monday, with concerns about banks outweighing optimism over better-than-expected U.K. manufacturing data.

The benchmark index dropped 0.3% to 6,525.51, after closing out last week with the biggest weekly advance since February.

On Monday, heavyweight bank HSBC Holdings PLC (HSBC) skidded 1.3% after setting aside around $1.7 billion to cover one-off charges, such as legal settlements and compensation to customers.

Shares of Royal Bank of Scotland Group PLC (RBS) dropped 1.6% after Investec cut the bank to sell from hold.

On a more upbeat note, shares of easyJet PLC added 2.3% after rival budget airliner Ryanair Holdings PLC lifted its full-year profit guidance and reported a rise in second-quarter earnings. Ryanair shares leapt 9.2% in Dublin.

In data news, the U.K. manufacturing purchasing managers index -- a gauge of factory activity -- rose to a three-month high in October, led by stronger domestic demand. The pound (GBPUSD) moved higher after the report, trading at $1.6005, from $1.5999 ahead of the data.

Also read: European stocks pull back

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