FTSE closes at two month low

Heavy losses by oil stocks and fresh concerns over consumer spending conspired to send the FTSE 100 Index to its lowest close in two months today.

The Footsie ended the day 18.3 points lower at 4900.7 despite a positive start to trading across the Atlantic.

Oil giants Shell and BP contributed a large part of the fall as the cost of a barrel of US light crude oil slipped below $54, moving further from recent highs as US data showed fuel stocks rising by more than expected last week.

BP – the largest company in the Footsie – lost 9p to 547p and Shell weakened nearly 1% or 4.5p to 476p.

Drinks giant Scottish & Newcastle was the second heaviest faller, dropping nearly 4% or 17.5p to 461.5p.

The highest Footsie climbers today were Enterprise Inns up 22.5p to 768p, Reckitt Benckiser rising 29p to 1702p, Unilever up 8p to 527p and Compass rising 3.25p to 254.25p.

The heaviest fallers were Tate & Lyle down 22p to 527.5p, Scottish & Newcastle off 17.5p to 461.5p, Legal & General down 3.5p to 113.25p and Corus off 1.25p to 54p.