Banks, energy extend declines
U.S. Feb CPI in focus
FTSE 100 down 0.5, FTSE 250 off 0.3

March 14 Reuters UK39;s FTSE 100 languished at twomonth lows on Tuesday as fears of a contagion from the collapse of Silicon Valley Bank SVB continued to knock down bank stocks, while energy shares tracked declines in oil prices.

The bluechip FTSE 100 lost 0.5 after tumbling 2.6 on Monday, which was its biggest singleday drop in more than eight months.

British banks dropped 1.2. They sank 4.9 in the previous session their worst oneday performance in over a year on fears of a fallout from SVB39;s collapse hitting UK shores.

UK39;s banking shares have shed about 10 in the last three days. However, the declines are still lower than their U.S. peers, sliding more than 13 during the period.

HSBC lost 1.5 after a report said that Europe39;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 slipped 1.6 as oil prices fell more than 1.

The more domesticallyfocussed FTSE 250 midcap index also fell 0.3.

Investors will be eyeing U.S. inflation data due later in the day, a crucial metric in gauging where the U.S. Federal Reserve stands on further monetary policy tightening ahead of its interest rate decision next week.

I think SVB and the impact it39;s having in the financial world is likely the breaking point for the Fed in terms of how markets are concerned, said Daniela Hathorn, senior market analyst at…