By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- The U.K.'s FTSE 100 index dropped for
the first time in seven days on Thursday, as some of the
benchmark's major companies, including Lloyds Banking Group,
Rolls-Royce and Rio Tinto, declined after reporting earnings.
The FTSE index lost 0.7% to 6,628.00, after closing at the
highest level since Jan. 23 on Wednesday.
Shares of Lloyds Banking Group PLC (LYG) dropped 4.2% after the
bank posted a full-year loss as provisions for mis-sold
payment-protections insurance continued to have an impact on its
bottom line.
Other banks were also on the decline, with shares of Barclays
PLC (BCS) down 2.8%, Royal Bank of Scotland Group PLC (RBS) off
1.7%, and heavyweight HSBC Holdings PLC (HSBC) 0.3% lower.
Shares of Rolls-Royce Holdings PLC slumped 13% after the
aerospace and defense company warned that it expects no revenue
growth in 2014 for the first time in 10 years. For 2013, the
company reported a 41% drop in profit.
Tate & Lyle PLC slid 15% after the food-ingredient firm
lowered its guidance for fiscal 2014.
Shares of Rio Tinto PLC (RIO) slipped 0.5% after the mining
giant said it swung to an annual profit in 2013, but also said it
will write down assets, including its Oyu Tolgoi copper project in
Mongolia, by $3.4 billion.
The rest of the mining sector also moved lower, as most metals
prices declined. Shares of Antofagasta PLC dropped 2.2%, Anglo
American PLC lost 1.7%, and Glencore Xstrata PLC (GLCNF) fell
1.6%.
On a more upbeat note, shares of Imperial Tobacco Group PLC
(ITYBY) rallied 5% after the tobacco company said it expects modest
growth in earnings per share for the full year and at least a 10%
increase in dividend.
British American Tobacco PLC (BTI) gained 1.4%.
Among other notable advancers, AMEC PLC rose 2.6% after the
oil-services firm said it agreed to buy U.S.-listed
Switzerland-based Foster Wheeler AG (FWHLF) in a cash-and-shares
deal valued at around $3.3 billion.
Shire PLC climbed 1.7% after the biopharma firm said full-year
revenue rose 9%.
More must-reads from MarketWatch:
European stocks break six-day winning run; BNP slides
Time Warner Cable, Comcast confirm $45 bln deal
Warren Buffett is laughing at you for selling
Subscribe to WSJ: http://online.wsj.com?mod=djnwires