By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.K. stocks aimed higher Friday, with
banking issues advancing on the prospect of an investigation
settlement between major financial firms and an industry
regulator.
The U.K.'s FTSE 100 index was up 0.2% to 342.24, reversing a
loss as bank stocks strengthened. The move came after The Wall
Street Journal reported the U.K.'s Financial Conduct Authority has
spoken with six major banks about a potential settlement of a
long-running investigation into possible manipulation of currency
markets.
People familiar with the matter said the FCA has spoken with
executive and lawyers at Barclays PLC, HSBC Holdings PLC, Royal
Bank of Scotland Group PLC, as well as Citigroup Inc. (C) , J.P.
Morgan Chase & Co. (JPM) and UBS AG .
In London, shares of HSBC climbed 0.7%, and Barclays and RBS
each picked up 0.3%.
But pressure remained on shares of Sports Direct International
and supermarket chain Tesco PLC, whose stock was facing its worst
weekly performance in more than two years.
Sports Direct dropped 2.4%, extending Thursday's loss of 3.4%.
The retailer, under owner Mike Ashley's direction, made a 43
million pound ($70.1 million) bet via a put-option that shares of
embattled Tesco will rise, it said.
Shares of Tesco were down 0.5%. The shares were on track for a
17% weekly slide after Monday's revelation that its profit forecast
was overestimated by GBP250 million stemming from an accounting
error. A loss of 17% would be the biggest weekly fall since January
2012.
Off the FTSE 100, De La Rue PLC shares stumbled 33% after the
bank-note printer -- whose customers include the Bank of England --
issued a profit warning for the year, as trading conditions "have
deteriorated".
For the week, the FTSE 100 was in line for a 2.6% drop. Stocks
on Thursday were in part hurt after BOE Governor Mark Carney said
the time for an interest-rate hike is moving closer. Such a move
could come as early as next year, economists have said.
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