LONDON, June 9 — London’s FTSE 100 index underperformed its European peers today, weighed down by heavyweight financials and mining stocks, while Clinigen Group eyed its worst day on record after a downbeat earnings update.

The blue-chip index fell 0.6 per cent, dragged down by life insurers, base metal miners and homebuilders.

Banks gave up 1.3 per cent, with Barclays leading the decline. HSBC Holdings slipped 1.2 per cent after Moody’s downgraded its senior insecured debt rating to A3 from A2.

The domestically focused mid-cap FTSE 250 index declined 0.4 per cent.

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World stock prices held near record highs as investors bet the Federal Reserve is some way off from tapering its economic stimulus.

“It has been a very quiet week. Everyone is waiting for the ECB decision and the US inflation numbers tomorrow. Volumes are very light and there’s not much sort of decisive leadership across sectors,” said Ian Williams, economics & strategy research analyst at Peel Hunt.

“Compared to the Fed and even the Bank of England, the ECB probably would be a little bit more cautious and the withdrawal of stimulus in the eurozone is further away than it is here or in the US”

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After breaking above the 7,000 mark in mid-April, the FTSE 100 index has oscillated in a narrow range on worries that rapid economic growth could lead to higher inflation and faster tightening of ultra-loose monetary policies.

Among stocks, Smith+Nephew jumped 4 per cent to the top of the FTSE 100 index, after Credit Suisse upgraded the medical products maker’s stock to “outperform” from “neutral”.

Clinigen Group slumped 23 per cent as RBC cut its price target on the stock after the pharmaceutical company forecast annual adjusted EBITDA within the range of £114 million and £117 million, lower than market expectations.

Upper Crust owner SSP Group reversed its course to trade 1.2 per cent higher even after it reported a first-half loss of £182 million (RM1 billion), bringing its shortfall over the past 18 months to more than £600 million. — Reuters