Emerging markets-focused banking titan Standard Chartered fell after the US banking regulator accused it of collusion with the government of Iran to hide transactions from authorities. Nomura, Oriel Securities and Bank of America all downgraded their ratings on the stock this morning. ??
Nomura cut its recommendation for the stock today, from 'buy' to 'neutral'. While the broker said that StanChart's response to the issue gives "some comfort", it also commented that it sees "negative headline risk" and therefore keeps a slightly cautious stance. Perhaps significantly, ratings agency S&P has indicated that the New York State regulatorīs prove has no implications for the bankīs credit standing.
Sector peers Royal Bank of Scotland and Barclays were also firmly out of favour.
Evraz is higher for a second day after UBS yesterday removed the stock from its least preferred list.
Legal & General was also heading lower, despite hiking its interim dividend by almost a fifth as it expressed "resilience" amidst tough conditions.
Heading the other way was Holiday Inn owner InterContinental Hotels after seeing revenues rise in the first half and saying that it would return $1bn to shareholders.
Mining giant Xstrata advanced despite reporting a 23% decline in profits in the first half of the year after it was hit by a drop in commodity prices as well as increasing costs.
It wasn't the only miner to be on the up, with Polymetal, Anglo American, ENRC and Glencore all chasing metal prices higher.
FTSE 100 - Risers
Evraz (EVR) 271.20p +8.05%
InterContinental Hotels Group (IHG) 1,747.00p +7.71%
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