Shares in two of the U.K.’s largest banks,


Barclays



BARC.LN -6.52%



Barclays PLC


U.K.: London


GBp215.00


-15.00
-6.52%



June 26, 2014 4:39 pm

Volume :
244.49M




P/E Ratio
43.00

Market Cap
GBp38.36 Billion


Dividend Yield
1.86%

Rev. per Employee
GBp262,765









06/26/14 The LSE Goes Passive Aggressiv…
06/26/14 Shares in Barclays, Standard C…
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PLC and Standard Chartered PLC, slumped prominently on Thursday, as banking stocks slid across Europe while other sectors gained.

Barclays shares dropped to a 20-month low after New York Attorney General

Eric Schneiderman

was said to be readying an announcement of a lawsuit against the British bank for allegedly lying about how it favors high-frequency players in the firm’s stock-trading business.

Standard Chartered also sank after warning its first-half operating profit will be 20% lower than a year earlier, hurt by weaker-than-expected trading in its financial markets unit.

Those declines weighed on wider European banking stocks. The Stoxx Europe 600 banking subindex closed 1.1%, canceling out gains elsewhere as the pan-European index as a whole ended the day flat.

The suit filed against Barclays could shine a light on other operators of so-called dark pools, according to analysts at RBC. Credit Suisse has the biggest market share of U.S. pools, followed by Barclays and UBS, they said.

UBS and Credit Suisse shares also declined.

“We see this latest development as highlighting ongoing litigation risk for Barclays,” the RBC analysts said.

Outside the banking sector, most European shares were higher, led by


London Stock Exchange



LSE.LN +6.10%



London Stock Exchange Group PLC


U.K.: London


GBp1984.00


+114.00
+6.10%



June 26, 2014 4:35 pm

Volume :
1.17M




P/E Ratio
0.32

Market Cap
GBp5.09 Billion


Dividend Yield
2.09%

Rev. per Employee
GBp382,262









06/26/14 The LSE Goes Passive Aggressiv…
06/26/14 U.S. Stocks Pare Losses
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PLC, which climbed after it confirmed plans to buy Frank Russell Co., a Seattle-based stock-index and asset-management business, for $2.7 billion. The acquisition will be funded in part through a $1.6 billion rights issue to be launched in September.

U.K. housing stocks were also handed a boost after the Bank of England outlined new measures to rein in mortgage lending that were less severe than some investors had expected.

Taylor Wimpey PLC, Persimmon PLC, and Barratt Developments PLC all surged.

The pound was also boosted, with analysts highlighting Bank of England chief

Mark Carney’s

assertion that mortgage policies don’t alter the outlook for U.K. interest rates, which many expect to rise before the end of the year.

“These measures aren’t as draconian as maybe some had wondered,” said

Daragh Maher,

a currency strategist at


HSBC.



HSBA.LN -1.16%



HSBC Holdings PLC (UK Reg)


U.K.: London


GBp594.60


-7.00
-1.16%



June 26, 2014 4:35 pm

Volume :
29.34M




P/E Ratio
11.84

Market Cap
GBp114.73 Billion


Dividend Yield
3.98%

Rev. per Employee
GBp186,219









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“There has been an underlying enthusiasm for sterling that may have been sidelined ahead of this announcement, and is now returning.”

The pound added 0.2% against the dollar to trade at $1.7016. Sterling also added 0.3% against the euro.

The declines in the banking sector weighed on major indexes.

The Stoxx Europe 600 closed unchanged. Germany’s DAX fell 0.6% and France’s CAC-40 by 0.5%, while the U.K.’s FTSE 100 was flat.

Write to Nina Bains at nina.bains@wsj.com and Tommy Stubbington at tommy.stubbington@wsj.com