(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window) * FTSE 100 down 0.4%, FTSE 250 off 0.3% July 26 (Reuters) - Banks and energy shares dragged London’s FTSE 100 lower on Monday, with worries about rising inflation and a jump in local COVID-19 infections denting sentiment further. The benchmark FTSE 100 dropped 0.4%, with banks and energy stocks falling the most. HSBC Holdings and Barclays were among the top losers. They tracked the benchmark bond yield lower, which fell to its lowest since February. The domestically focussed mid-cap index eased 0.3%. London-listed shares of Ryanair jumped 2.6% after it nudged up its forecast for full-year traffic on strong summer bookings. But it also said fares remained well below pre-pandemic levels while reporting an after-tax loss of 273 million euros ($321.5 million). Coast Capital fund demanded the resignation of FirstGroup’s chief executive and two board members, pulling shares down 0.9% in the wake of a contentious asset sale, deepening a rift between the British transport company and its biggest shareholder. (Reporting by Shashank Nayar in Bengaluru; editing by Uttaresh.V) Our Standards: The Thomson Reuters Trust Principles.