Bank stocks extend declines, drag FTSE 100 lower at open

UK's FTSE 100 opened lower on Tuesday as fears of contagion risks from the collapse of Silicon Valley Bank (SVB) continued to knock down bank stocks, while energy stocks tracked declines in oil prices. The blue-chip FTSE 100 lost 0.1% by 0811 GMT, extending declines after a 2.6% tumble on Monday, which was its biggest single-day drop in more than eight months.

UK's FTSE 100 opened lower on Tuesday as fears of contagion risks from the collapse of Silicon Valley Bank (SVB) continued to knock down bank stocks, while energy stocks tracked declines in oil prices.

The blue-chip FTSE 100 lost 0.1% by 0811 GMT, extending declines after a 2.6% tumble on Monday, which was its biggest single-day drop in more than eight months. British banks fell 0.8%. They sank 4.9% on Monday, which was their worst one-day performance in over a year on fears of the fallout from SVB's collapse hitting UK shores.

HSBC lost 1.2% after reports said that Europe's largest bank plans to inject 2 billion pounds ($2.43 billion) into the UK unit of SVB that it recently took over. The energy sector lost 0.8% as oil prices fell more than 1%.

The more domestically-focussed FTSE 250 midcap index , however, gained 0.2%. Meanwhile, data showed growth in pay in Britain lost pace in the three months to January, an important gauge for the Bank of England to determine its future rate hike path. ($1 = 0.8230 pounds)

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