Troubled financials put market under pressure

BANKING stocks put the FTSE 100 Index back under pressure yesterday after a second session of bad news from the sector.

The Footsie performed strongly in November, prompting hopes it could breach 4200, but the new month has brought little in the way of festive spirit and the blue-chip index closed 26.8 points lower at 4048.6.

Yesterday, it was the turn of Lloyds TSB to rattle investors, after rival Barclays warned a day earlier that profits would be at the lower end of forecasts. Lloyds TSB said it was satisfied with its performance so far this year but the City’s focus was on hefty provisions. It has put aside stg£205 million for mis-sold endowment mortgages and pensions while warning the bad debt provision for corporate lending is set to rise.