FTSE down as BP and Barclays hit

Barclays took a tumble on the FTSE 100 Index today as investors were unimpressed by its latest quarterly report.

The banking giant slid around 5% despite posting a £1.82bn (€2.1bn) profit for the first three months of the financial year, with traders left disappointed by signs of slowing growth in the investment banking division.

Overall the Footsie fell 37.3 points to 5580.5 by lunchtime as heavyweight financial and mining stocks were on the back foot.

Investor attention continues to be focussed on the Greek debt crisis as European officials hammer out agreements over a bailout package.

Fears that Germany would delay its contribution over demands for more stringent austerity measures in the debt-laden Mediterranean nation have caused market volatility in recent days.

Away from Greece, investors will have one major news release to digest today - the preliminary estimate of US economic growth for the first quarter of 2010.

The consensus in the markets is that the US economy grew at a 3.4% annual rate, which would mark the third straight quarterly gain.

Wall Street was poised for a solid opening after gains yesterday.

In London, Barclays topped the fallers board - down 19.45p at 341.8p - after a wary reaction to its first quarter figures as the group also faced investors at its annual general meeting.

The blue-chip banking giant took a hit after news that income at the investment banking division dropped markedly year-on-year to £3.8bn (€4.37bn) from £5.2bn (€6bn), which overshadowed a 90% leap in underlying group profits.

Part-nationalised rivals Royal Bank of Scotland and Lloyds Banking Group were also on the back foot following earlier gains. The pair lost 1.25p to 54.95p and 0.87p to 67.13p respectively.

Oil firms were also in the spotlight amid the worsening picture around BP's Gulf of Mexico spill. Shares in the oil major fell 1.3% - or 7.5p to 576.7p - as one analyst estimated the cost of the clean-up operation and drilling relief wells could be $845m (€634m).

Meanwhile, rival Royal Dutch Shell was going in the other direction, adding 18p to 1979p.

Marketing communications giant WPP led the Footsie risers after its update for the first three months of 2010 revealed its first monthly revenue growth for more than a year in March .

The firm rose 15p to 706.5p as it said profits and operating margins had been "well above" budget and against last year.