Market roundup: HSBC leads FTSE down at close

HSBC announced 8,000 job cuts in the UK Tuesday 9 June as it considers moving its headquarters to Asia. Reuters

News that HSBC plans to cut as many as 8,000 jobs in the UK as it mulls relocating its headquarters from London's Canary Wharf to Asia failed to excite the FTSE Tuesday.

"Worryingly, from a UK perspective, the bank's new strategy focuses on growth in Asia," said says AJ Bell Investment Director Russ Mould, "by expanding its insurance business and its presence in China's Pearl River Delta region."

The bank plans to make a decision by the end of the year. Its stock fell -0.94% to 613.70p with a 31,027,282 volume traded.

Overall this continued to push the FTSE on its downward trend, closing Tuesday 9 June at down 36.24 points (0.53%) at 6,753.80. Last week the index hit a two-month low of 6,804.60. Another factor for the decline, analysts said, are the delicate state of talks between Greece and its creditors.

Royal Mail continued to outperform and closed highest among the FTSE gainers on Tuesday after the government said last week it intended to sell off the 30% public interest it still holds in company.

Shares in the company rose 2.10% to finish at 510.75 pence.

Television channel Sky fell -1.07% to 1,015.00 in reaction to the news that BT had won the rights to broadcast European football.

Leading the underperformers on the FTSE was British multinational publishing and education company Pearson, down 2.38% to 1,273.00. The fall comes amid news last week that Pearson's ePEN software, which is being used this year for the first time to mark 600,000 students Stats papers, was freezing for as long as five minutes between questions during exam marking.

The fall came despite research analysts at Natixis reissuing its "buy" rating early Tuesday, as well as "buy" and "hold" recommendations from other analysts.

Mining companies Anglo American (-2.00%) and Rio Tinto (-1.33%) also fell sharply as new data emerged from China showing the country's copper imports lagged 16.3% behind last month.

FTSE 100 biggest risers