* FTSE 100 down 0.1 percent, near May 2013 high
* Barclays leads banks down after Deutsch Bank report
* Miners hit by slowing China growth
* Market just 0.3 percent off 13 year high
By Alistair Smout
LONDON, Jan 20 Britain's top share index edged
down from eight-month highs on Monday, pinned back by a fall in
the banking sector after German lender Deutsche Bank reported a
Barclays fell 1.6 percent in early trade, the top
faller on the FTSE 100, after Deutsche Bank
posted a pre-tax loss of 1.15 billion euros ($1.6 billion) for
the fourth quarter, itself dropping 5.1 percent.
Barclays is the closest peer among UK-listed banks to
Deutsche Bank, as it is also driven by investment bank trading
in fixed income, currencies and commodities (FICC).
"Barclays bank has had a fantastic run in the last couple of
weeks... and on the back of Deutsche Bank's unexpected report,
they're moving lower," Manoj Ladwa, head of trading at TJM
Partners, said, adding that Barclays was most exposed to poor
trading for Deutsche Bank.
"It doesn't bode well for banking stocks."
Barclays had been up 15 percent since mid-December before
Monday's falls. While Nomura said that FICC-driven banks like
Barclays would be hurt by the news, it added that the greater
possibility of balance sheet reductions in Barclays should limit
losses in the UK-listed bank.
The FTSE 100 was down 3.40 points, or 0.1 percent, at
6,825.90 by 0835 GMT, with financials, including banks, asset
managers and insurers, taking 8 points off the index, which was
offset by gains elsewhere.
Miners also weighed on the index after China reported
slowing economic growth in the last quarter of 2013, hitting the
price of copper.
The mining sector fell 0.6 percent, having
posted its best week in 18 months last week.
The falls took the FTSE 100 down from an eight-month closing
high posted at the end of last week, just 0.3 percent off a
13-year closing high posted in May.
Some traders were confident in the prospects for the market
and its ability to break through the 2013 high, expecting a
generally reassuring earnings season despite Monday's high
profile miss from Deutsche Bank.
Of the 14 percent of companies to report yearly earnings so
far this reporting season, 86 percent have beaten or met
expectations on the FTSE 100, compared to just 67 percent on the
pan-European STOXX Europe 600.
"We maintain the markets will continue to push higher
through January... on strong corporate earnings led by double
digit earnings growth," Atif Latif, director of trading at
Guardian Stockbrokers, said.
"Equities still remain in an uptrend and we have continued
to maintain our bullish bias."