London stocks fall as rate hike worries linger, Lloyds drags

London stocks fell on Wednesday, bogged down by downbeat corporate earnings, while worries of interest rates remaining higher for longer further dented risk appetite. The blue-chip FTSE 100 lost 0.7% by 0825 GMT, while the more domestically-focussed FTSE 250 midcap index shed 0.5%.

London stocks fell on Wednesday, bogged down by downbeat corporate earnings, while worries of interest rates remaining higher for longer further dented risk appetite.

The blue-chip FTSE 100 lost 0.7% by 0825 GMT, while the more domestically-focussed FTSE 250 midcap index shed 0.5%. Shares of Lloyds Banking Group fell 2.1% after Britain's biggest mortgage lender reported a flat annual profit for 2022 as a jump in income driven by higher interest rates was offset by mounting bad loan provisions.

The banking sector lost 1.5% in early trading. London-listed shares of Rio Tinto slumped 1.8% after the global miner posted a 38% drop in annual profit and more than halved its dividend. The industrial metal mining sector dropped 1.9%.

U.S. stock indexes recorded their worst single-day performance of the year on Tuesday after data showing a rebound in U.S. business activity fuelled fears of higher-for-longer rates. Those worries will remain in focus ahead of the release, later in the day, of the minutes of the U.S. Federal Reserve's January meeting.