Bank stocks drag FTSE 100 lower at open as banking crisis jitters persist

British banks fell 2.9%, extending declines from last week, which was their worst weekly performance in more than a year. HSBC and Standard Chartered were amongst the top decliners, falling 3.0% and 4.8%, respectively.

London stocks fell at the open on Monday, as banks stretched declines after Swiss lender UBS's weekend deal to rescue battered rival Credit Suisse failed to stem fears of a global banking meltdown.

By 0802 GMT, the blue-chip FTSE 100 was down 0.7%, after falling 1% on Friday. British banks fell 2.9%, extending declines from last week, which was their worst weekly performance in more than a year.

HSBC and Standard Chartered were amongst the top decliners, falling 3.0% and 4.8%, respectively. UBS agreeing to buy its beleaguered peer Credit Suisse for $3.23 billion on Sunday failed to lift sentiment around the banking sector.

Energy majors Shell and BP lost 1.7% and 1.4%, respectively, while the broader oil and gas index dropped 1.7%, tracking a decline of more than 2% in oil prices. The more domestically-focussed FTSE 250 midcap index also shed 0.9%.