FTSE 100 falls despite boost from IHG hotels group

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The UK's main share index fell in early trade as disappointing from HSBC outweighed news of a special dividend from Intercontinental Hotels Group.

The benchmark FTSE 100 index dropped 17.25 points to 7,282.61, with HSBC shares down 5.3% after the bank's annual profits more than halved.

Profits fell 62% to $7.1bn (£5.7bn), mainly due to a number of one-off charges.

Shares in rival bank Standard Chartered were down 2%.

But Intercontinental Hotels Group (IHG) rose nearly 3% after it announced plans to pay out $400m via a special dividend.

News of the dividend came as IHG reported a 4% rise in annual operating profits to $707m.

Mining shares were higher as the recovery in commodity prices helped to improve results at BHP Billiton and Anglo American. Shares in Anglo rose 2.1% while BHP was 1.5% higher.

On the currency markets, the pound fell 0.3% against the US dollar to $1.2425 but edged up 0.1% against the euro to 1.1754 euros.

BBC

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