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 0.2% to end at 6,659.42, after closing at
the highest level since Jan. 23 on Wednesday.
Shares of Lloyds Banking Group PLC (LYG) dropped 2.7% 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 also declined, with shares of Barclays PLC (BCS)
down 1.6% and Royal Bank of Scotland Group PLC (RBS) off 0.7%.
Shares of Rolls-Royce Holdings PLC slumped 14% 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 16% after the food-ingredient firm
lowered its guidance for fiscal 2014.
Shares of Rio Tinto PLC (RIO) slipped 0.4% after the mining
giant said it swung to an annual profit in 2013, but also said it
will write down the value of assets, including its Oyu Tolgoi
copper project in Mongolia, by $3.4 billion.
The rest of the mining sector also moved lower, as metals prices
were mixed. Shares of Antofagasta PLC dropped 2.4%, Anglo American
PLC lost 0.5%, and Glencore Xstrata PLC (GLCNF) fell 1.5%.
AMEC PLC fell 1.1% 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.
On a more upbeat note, shares of Imperial Tobacco Group PLC
(ITYBY) rallied 5.7% 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 1.9%.
More must-reads from MarketWatch:
European stocks break six-day winning run; BNP slides
Warren Buffett is laughing at you for selling
Follow U.S. market action on the live blog
Subscribe to WSJ: http://online.wsj.com?mod=djnwires