FTSE slips amid oil and banks squeeze
Record oil prices and weaker banking stocks took the shine off the London market’s recent three-year high today.
The cost of a barrel of US light crude oil soared above $59 in New York – boosting the likes of BP and Shell but dragging oil-dependent stocks like British Airways lower.
The latest increase in the cost of oil came after ongoing supply worries were compounded by a threat to Western consulates in Nigeria.
A series of banks were also in the doldrums after Lloyds TSB warned it had seen an increase in levels of high street arrears.
These factors contributed to the FTSE 100 Index weakening from Friday’s three-year high, closing 5.6 points lower at 5072.
The biggest Footsie risers today were Shire Pharmaceuticals up 32p to 627.5p, Cadbury Schweppes rising 10p to 541.5p, SAB Miller up 13p to 854.5p and BG rising 6.75p to 455.75p.
The heaviest fallers were ICI down 7.5p to 266.5p, Reed Elsevier off 9.5p to 534p, British Airways down 4.5p to 273p and Hays off 2p to 126.25p.
