London stocks dragged down by financials after US lawmaker calls for StanChart probe

Aug 15 (Reuters) - British stock indexes were led lower by financial shares on Friday after a U.S. lawmaker called for an investigation into Standard Chartered bank, pointing to sanctions violations.

Elise Stefanik, a Republican representative from New York, requested a special attorney probe into Standard Chartered STAN.L, sending its shares down 7.2% by the close.

The blue-chip FTSE 100 index .FTSE, which includes the lender, ended 0.4% lower despite reaching a record intraday peak earlier in the session.

That snapped a four-day winning streak, though the index still managed to conclude the week with modest gains of 0.5%.

Other financial stocks also took a hit, with a gauge of UK's banks .FTNMX301010 down 1.9%, the most among sectors. Still, it gained 0.4% for the week and 31.5% this year.

Adding to market pressure, the aerospace and defence sector .FTNMX502010 declined 1.7% ahead of a scheduled high-stakes meeting between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska later in the day.

Investors will be watching for any signs of a credible peace deal, with any substantive outcomes likely setting the market tone for the coming week.

Despite Friday's decline, the UK defence sector has advanced 71% this year, bolstered by the government's increased defence spending commitments . The sector closed the week 0.7% higher, even as peace efforts in the Ukraine conflict were gaining momentum.

The energy sector .FTNMX601010, up 0.8%, was also in focus as any ceasefire could result in the easing of sanctions on Russian oil exports, potentially placing downward pressure on global crude prices. O/R

Industrial metal miners .FTNMX551020 provided some support, rising 1.4%, as weak economic data from key commodities consumer China fueled hopes that it would spur Beijing to unleash more stimulus measures. MET/L

The midcap index .FTMC fell 0.2% after rising as much as 0.3% in the session, with financial stocks leading the decline. The index was 0.1% down for the week.

Bytes Technology BYIT.L was the top performer on the index, rising 7.9% as the IT firm announced a 25 million pounds ($33.89 million) share repurchase program.

($1 = 0.7379 pounds)

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