FTSE falling

The London market was under pressure today as lower oil prices and concerns over the global economy weighed on sentiment.

The FTSE 100 Index was 75.3 points lower at 4255.1 following losses in European and Asian markets and a 2% fall for Wall Street’s Dow Jones Industrial Average yesterday.

The Bank of Japan cut its key interest rate to just 0.1% overnight, following the US Federal Reserve’s move to near zero this week in a desperate bid to revive an ailing economy.

Crude oil on the New York Mercantile Exchange for February delivery was hovering above US$41 a barrel, hitting heavyweights BP and Royal Dutch Shell.

While British Prime Minister Gordon Brown stressed the damaging impact of volatile oil prices at a London conference, BP shed 4% or 24p to 500.5p, while Shell was off 46p at 1702p.

Banks added to the market malaise after heavy losses on Thursday caused by fears of further recapitalisation. Royal Bank of Scotland shed 2.6p to 43.9p, while Lloyds TSB was 7.1p lighter at 119.3p.

Among the risers, cruise ship firm Carnival gained further ground after forecast-beating results in the previous session. The stock rose 31p to 1473p.

High street retailer Marks & Spencer meanwhile was 1.25p better off at 225.5p despite brokers at KBC Peel Hunt kicking off coverage of the firm with a sell rating.

On a quiet day for corporate news, car dealership Lookers saw shares fall 12% after it said it was likely to make a bottom-line loss this year. The stock was off 3.13p at 21.75p.

A downbeat trading update from oil and gas services firm Hunting sent shares 19.5p lower at 425.5p after it warned of an uncertain outlook next year.

This hit energy services group Amec, down 20.75p to 488.75p in the top tier, although Wood Group was 0.25p ahead at 200.75p.