Lloyds Banking Group drops 8 percent on first-quarter loss

European equities markets were mostly lower Thursday after quarterly reports in the banking sector disappointed.

The FTSE 100 was down 1.07 percent to 5,919.98 in London, while the FTSE 250 dropped 0.53 percent to 11,845.7 as the Bank of England kept UK interest rates steady at 0.5 percent, just as expected.

Lloyd’s Banking Group (LSE: LLOY) led declines in London’s banking sector, dropping 8 percent on a loss in the first quarter after putting aside £3.2 billion to pay possible claims over irregularities in selling payment protection coverage, while Royal Bank of Scotland (LSE: RBS) was down 2.93 percent.

Investment management group Schroders (LSE: SDR, SDRt) was the biggest decliner on the 100 as its voting shares were 9.19 percent lower and its non-voting shares fell 8.09 percent on profits that disappointed, while oil rig builder and refurbisher Lamprell (LSE: LAM) was 5.37 percent lower to lead declines on the 250 and in an all-lower energy sector.

The basic resources sector, which includes miners, was lower as well as metals prices continued to decline, with Talvivaara Mining Company (LSE: TALV) turning in the worst performance in the sector as it dropped 5.03 percent, while significant declines also came for Vedanta Resources (LSE: VED), which was down 4.32 percent after it said it will sell shares to help raise the cash to complete its purchase of Cairn Energy’s (LSE: CNE) India unit.

Gold and silver miner Fresnillo (LSE: FRES) dropped 4.62 percent, while iron-ore miner Ferrexpo (LSE: FXPO) was 3.56 percent lower, while the best performer in the sector was paper maker Mondi (LSE: MNDI) with a gain of 2.55 percent.

Cruise line operator Carnival (LSE: CCL) was the best performer on the 100 as it added 4.17 percent and rail and bus transport specialist Go-Ahead Group (LSE: GOG) was up 6.79 percent to lead gains in the travel and leisure sector and on the 250, while International Consolidated Airlines Group (LSE: IAG), the parent company of British Airways, was 2.76 percent higher and public transport company First Group (LSE: FGP) gained 3.4 percent.

The travel and leisure sector was mixed, however, with decliners led by pubs operator Punch Taverns (LSE: PUB) as it dropped 1.9 percent.

The retail sector was also mixed with sporting goods retailer Sports Direct International up 3.07 percent to lead gains in the sector but automobile retailer Inchcape (LSE: INCH) dropped 1.77 percent for the worst day in the sector.

Medical devices manufacturer Smith & Nephew (LSE: SN) added 3.03 percent to lead a mixed health care sector, while drug maker Shire (LSE: SHP) was the worst performer in the sector, dropping 1.77 percent.

The FTSE Eurofirst 300 was down 0.29 percent to 1,131.36 while the IBEX fell 0.8 percent to 10,627.3 and the CAC-40 dropped 0.95 percent to 4,004.87, but the Dax managed to added 0.04 percent to 7,376.96 in Frankfurt.

Markets in the Asia-Pacific region were mixed after a report from the Institute for Supply Management showed Wednesday that growth in the US services sector slowed in April, with the Shanghai Composite adding 0.22 percent to 2,872.4 while Taiwan’s Taiex was up 0.8 percent to 9,018.61.

Australia’s markets were also higher, with the S&P/ASX200 adding 0.29 percent to 4,753.7 while the Sydney Ordinaries gained 0.31 percent to 4,828.9, with the advances coming after earlier declines on a report that retail sales there were down in March.

The Straits Times Index was 0.13 percent lower to 3,109.85 in Singapore, while Hong Kong’s Hang Seng was down 0.23 percent to 23,261.6 as the property sector dropped on a decline in home sales there last month and the Sensex dropped 1.4 percent to 18,210.6 in India.

Tokyo’s markets remained closed due to holidays and South Korea’s markets were also closed for the session.

New York equities markets were mixed as the Dow Jones Industrial Average fell 0.49 percent to 12,661.4 in afternoon trade and the S&P 500 dropped 0.25 percent to 1,343.89 but the Nasdaq Composite added 0.26 percent to 2,835.29.

Crude oil prices plummeted, with June contracts in New York down below $100 per barrel, while Brent crude was last reported down nearly $11 per barrel to just over $110 per barrel, with New York and London prices each down nearly 9 percent.

Metals prices were also dramatically lower as gold dropped well below $1,500 per troy ounce in New York, sliver was nearly $3.50 lower and contracts for copper traded in New York down around 12 cents per pound.

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