Banks, insurers weigh on FTSE 100; Aviva slumps

Banks slipped 1.1% following a 1.4% fall in the shares of the lender HSBC, weighing on the FTSE 100. The pound hovered near a three-month high against the dollar as the greenback slipped on growing bets that the U.S. Federal Reserve could begin cutting interest rates next year.

UK's FTSE 100 slipped on Wednesday, dragged by insurers after Deutsche Bank turned bearish on insurance majors Aviva and Prudential, while a strengthening pound compounded the selling pressure.

By 0813 GMT, the blue-chip FTSE 100 index fell 0.4%, while the domestically-focussed midcap index added 0.3%. The life insurance sector slid 1.1%, as Prudential lost 1.3% after Deutsche Bank reduced its price target on the stock.

Aviva dropped 2.1% after the bank downgraded the stock. Banks slipped 1.1% following a 1.4% fall in the shares of the lender HSBC, weighing on the FTSE 100.

The pound hovered near a three-month high against the dollar as the greenback slipped on growing bets that the U.S. Federal Reserve could begin cutting interest rates next year. Among individual stocks, Halfords Group shed 19.6% after the bicycles-to-car parts retailer narrowed its annual profit forecast range and lowered the upper end of its expectations.

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