LONDON: Britain's top shares dropped on Tuesday, , Sept 7 paring gains over the previous seven sessions, with banks falling on European debt worries and miners hit as the threat of a punitive tax in Australia resurfaced.
By 1045 GMT, the FTSE 100 was down 43.82 points, or 0.8 percent, at 5,395.37.
The index had gained almost 6.5 percent over the previous seven days to reach its highest close since April 30, as robust economic data from the U.S. dampened double-dip recession fears and low volumes accentuated moves.
Banks, however, retreated after the Wall Street Journal said Europe's recent "stress tests" of major banks understated some lenders' holdings of potentially risky government debt.
Barclays fell 3.1 percent as the bank appointed Bob Diamond, the head of its investment and wealth management business Barclays Capital, as its new group chief executive to replace John Varley next year.
"The banking sector has fallen in value today through uncertainty," David Buik, senior partner at BGC Partners said.
"The sooner it is accepted that agreeing globally on bank regulation and taxation is a non-starter, the better for all concerned. The indecision in Brussels is what is making everyone so nervous - not Bob Diamond."
British hedge fund firm Man Group fell 4.4 percent, topping the fallers list, as investors retreated following recent sharp moves higher.
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MINERS PROVE TAXING
London-listed miners slipped 1.7 percent, with traders saying the formation of Australia's Labor minority government, supported by independent and Green MPs, will see iron ore and coal miners hit by a new resource tax.
With Prime Minister Julia Gillard retaining power, a new 30 percent tax is likely to go ahead, although there is uncertainty over how much they will have to pay.
Elsewhere, Cable & Wireless Worldwide, which gained over 10 percent last week, shed 3.1 percent as hopes that it might be the subject of a bid from Singapore Telecommunications were deflated by a Citigroup note.
The broker said the Singapore company wanted to focus on the Asia-Pacific region.
On the upside, defensively-perceived utility stocks were good gainers, with Severn Trent and United Utilities Group up 1.7 and 0.5 percent respectively, boosted as Citigroup hiked its target prices for the water firms.
Invensys, which is tipped to fall out of the FTSE 100 following this week's reshuffle, added 4.6 percent and topped the blue chip risers list, with traders citing a newspaper report that the company is a takeover target.
Tullow Oil rose 2.7 percent extending the previous session's gains, with traders citing speculation in the press on bid rumours from ExxonMobil and China Offshore Oil Corporation.
British Airways climbed 1.5 percent as UBS released a bullish note on the stock in which it raises its price target, saying that synergies from its merger with Iberia will drive performance.
By 1045 GMT, the FTSE 100 was down 43.82 points, or 0.8 percent, at 5,395.37.
The index had gained almost 6.5 percent over the previous seven days to reach its highest close since April 30, as robust economic data from the U.S. dampened double-dip recession fears and low volumes accentuated moves.
Banks, however, retreated after the Wall Street Journal said Europe's recent "stress tests" of major banks understated some lenders' holdings of potentially risky government debt.
Barclays fell 3.1 percent as the bank appointed Bob Diamond, the head of its investment and wealth management business Barclays Capital, as its new group chief executive to replace John Varley next year.
"The banking sector has fallen in value today through uncertainty," David Buik, senior partner at BGC Partners said.
"The sooner it is accepted that agreeing globally on bank regulation and taxation is a non-starter, the better for all concerned. The indecision in Brussels is what is making everyone so nervous - not Bob Diamond."
British hedge fund firm Man Group fell 4.4 percent, topping the fallers list, as investors retreated following recent sharp moves higher.
''
MINERS PROVE TAXING
London-listed miners slipped 1.7 percent, with traders saying the formation of Australia's Labor minority government, supported by independent and Green MPs, will see iron ore and coal miners hit by a new resource tax.
With Prime Minister Julia Gillard retaining power, a new 30 percent tax is likely to go ahead, although there is uncertainty over how much they will have to pay.
Elsewhere, Cable & Wireless Worldwide, which gained over 10 percent last week, shed 3.1 percent as hopes that it might be the subject of a bid from Singapore Telecommunications were deflated by a Citigroup note.
The broker said the Singapore company wanted to focus on the Asia-Pacific region.
On the upside, defensively-perceived utility stocks were good gainers, with Severn Trent and United Utilities Group up 1.7 and 0.5 percent respectively, boosted as Citigroup hiked its target prices for the water firms.
Invensys, which is tipped to fall out of the FTSE 100 following this week's reshuffle, added 4.6 percent and topped the blue chip risers list, with traders citing a newspaper report that the company is a takeover target.
Tullow Oil rose 2.7 percent extending the previous session's gains, with traders citing speculation in the press on bid rumours from ExxonMobil and China Offshore Oil Corporation.
British Airways climbed 1.5 percent as UBS released a bullish note on the stock in which it raises its price target, saying that synergies from its merger with Iberia will drive performance.
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