FTSE CLOSE: Markets dragged lower by BP share slump and nerv
17.30 (close): A slump for oil giant BP amid fears it will be unable to secure an out-of-court settlement with the US government over the Gulf of Mexico disaster dragged the London market lower today.
BP slumped 3 per cent after the US Department of Justice accused it of 'gross negligence and wilful misconduct' in the Deepwater Horizon explosion that claimed 11 lives.
BP denies the allegations of gross negligence and with the company being a major constituent of the FTSE 100 Index, the top flight closed down 14.2 points at 5657.9.
Market watch: Traders are fretting over whether the ECB will unveil a robust enough plan to help stricken eurozone members
Meanwhile, nerves that the European Central Bank will fail to prescribe the medicine needed for the ailing eurozone on Thursday also rattled traders.
But optimism was building amid reports the ECB may pledge to buy an unlimited amount of up to three-year bonds.
The pound was consequently down against a more buoyant euro at 1.26, while sterling was up against the US dollar at 1.59.
However, Kathleen Brooks, research director at Forex, said she did not see the September meeting as a 'game changer'.
She said: 'We think the most important meeting will be the October meeting, when the ECB will announce in detail its plan to purchase bonds and also, crucially, a start date for the purchases.'
Sports Direct International has shown no signs of suffering in the economic slowdown as Team GB's success during an 'unprecedented sporting summer' helped profits rise 20.4 per cent to £211.1 million in the 13 weeks to July 29.
The chain, which has nearly 400 stores and has sold an array of sportswear geared towards the Games including the TeamGB kit designed by Stella McCartney, said store sales rose 19.9 per cent. Shares were 3 per cent higher, up 10p to 324p.
Hargreaves Lansdown shares were 4.5p lower at 626p despite the investment funds broker reporting a 21 per cent hike in pre-tax profits to a record £152.8 million in the year to
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