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* FTSE 100 ends down 0.3 pct at 6,710.28 points
* Hefty Deutsche Bank demand hits banks
* FTSE 100 still up around 8 pct so far in 2016
By Alistair Smout
LONDON, Sept 16 Britain's top share index fell
on Friday to record a second straight week of losses as
heavyweight bank stocks dropped after U.S. regulators demanded
$14 billion from Deutsche Bank to settle claims over misselling
The blue-chip FTSE 100 index closed down 0.3 percent
at 6,710.28 points, posting a loss of around 1 percent over the
Royal Bank of Scotland fell 4.4 percent while
Barclays declined by 2.8 percent, with the European
bank sector as a whole hit by an 8.5 percent slump at Deutsche
Deutsche Bank dropped after getting the $14 billion demand
from the U.S. Department of Justice to settle claims that it
missold mortgage-backed securities. The figure was well above
what Deutsche had expected and the bank said it would fight for
"Investors in the sector have been spooked by this fine. It
remains to be seen exactly how much Deutsche Bank pays, but it's
a reminder of all the regulatory issues that the banks still
face," IG market analyst Chris Beauchamp said.
"There are concerns that there could be more fines further
along the road."
Some healthcare stocks managed to rise and outperform the
weaker overall market.
AstraZeneca rose 2 percent after the company said
combining its Forxiga type-2 diabetes drug with older medicine
Bydureon was more effective at controlling blood sugar levels
than treatment with either drug on its own.
Spire Healthcare, a FTSE 250 mid-cap stock, also
surged 8 percent following a media report of bid interest from
Mediclinic. Mediclinic fell 2.4 percent.
The FTSE 100 is still up around 8 percent since the start of
2016, as record low interest rates from the Bank of England have
hit returns on bonds and cash and driven investors to seek
better returns available from the stock market.
(Additional reporting by Adela Suliman and Sudip Kar-Gupta;
Editing by Louise Ireland/Keith Weir)