The FTSE 100 hovered near a record high of around 9,650 on Monday but continued to lag other major European indices as a sharp drop in precious metals weighed on the market. Fresnillo and Endeavour were the worst performers on the index, each losing more than 5%, as gold prices slid below $4,000 an ounce. Utility stocks also came under pressure in a risk-on environment, with National Grid slipping 0.2% and SSE down 1.3%. HSBC edged lower after setting aside a $1.1 billion provision to cover litigation linked to investor losses from Bernard Madoff’s Ponzi scheme, which will affect its upcoming third-quarter results. In contrast, banking shares outperformed, with Standard Chartered rising over 3%, while Lloyds, NatWest, and Barclays gained more than 1.5%. JPMorgan analysts cited strong fundamentals and consolidation potential in the sector, naming NatWest and Barclays as top picks and highlighting Lloyds’ re-rating prospects despite possible tax increases in the autumn budget.