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* Lloyds Bank slumps to eight-year low
* Oil stocks extend losses to seventh straight session
* AstraZeneca gains on topping profit, sales expectations
* FTSE 100 down 2.3%, FTSE 250 off 1.3%
(Updates to close)
By Sagarika Jaisinghani and Susan Mathew
July 30 (Reuters) - Gloomy quarterly results from banks and
a clutch of other firms saw the FTSE 100 post its worst session
in five weeks on Thursday, while uncertainty about U.S.
elections and a collapse in economic growth in the world's
largest economy also weighed.
Global sentiment took a hit as a 32.9% plunge in U.S. second
quarter economic growth, albeit lesser than expected, and a
tweet from U.S. President Donald Trump about possibly delaying
November elections unnerved markets.
"There's already heightened uncertainty around the election
... and the potential for a fiscal policy regime change. This
just adds to that uncertainty," said Phil Orlando, chief equity
market strategist, at Federated Hermes in New York.
The blue-chip FTSE 100 ended 2.3% lower on
broad-based losses, with Lloyds Banking Group sliding
7.6% to an eight-year low after swinging to a rare pre-tax loss
in the first half of 2020.
Standard Chartered tumbled 6.2% as the lender
posted a 33% slump in first-half profit after a six-fold jump in
credit impairment charges.
The mid-cap FTSE 250 slipped 1.3%, led by a 12% fall
for car dealer Inchcape as impairment charges pushed it
to losses.
The export-laden FTSE 100 is on track to record monthly
declines in July after rallying since April as faltering
economic data and surging COVID-19 cases have dented optimism
over a swift post-pandemic economic recovery.
Oil majors BP and Royal Dutch Shell
lost 3.6% and 5.5% as crude prices fell on fears that
more COVID-19 containment measures could hurt demand.
London shares of travel company TUI slipped after
it said it will shut 166 stores in the UK and Ireland due to the
downturn in travel caused by the coronavirus - a move that will
lead to more losses in the battered sector.
AstraZeneca, meanwhile, rose 1.6% on an upbeat
second quarter and reiteration of 2020 forecasts, while defence
company BAE Systems jumped after announcing plans to
restart dividend payouts.
(Additional reporting by Sinead Carew in New York; Editing by
Uttaresh.V and Sherry Jacob-Phillips)
