BP Plc (BP/) lost 1.9 percent after the U.S. Treasury Department stopped OAO Rosneft, which is part owned by Europe’s third-largest oil producer, from accessing America’s capital markets. Mothercare Plc (MTC) plunged 8.8 percent after the retailer said sales dropped in its domestic market. ITV Plc (ITV) jumped the most in a year and a half after cable TV company Liberty Global Plc bought a minority stake in the commercial broadcaster.
The FTSE 100 Index (UKX) slipped 46.35 points, or 0.7 percent, to 6,738.32 at the close in London, erasing its gains so far this month. The FTSE All-Share Index declined 0.6 percent today, while Ireland’s ISEQ Index fell 0.5 percent.
“With the recent introduction of broad sectoral sanctions by both the U.S. and the EU, the interests of the Russian elite are now directly threatened,” Michael Ingram, a market strategist at BGC Brokers LP in London, wrote in an e-mail. “BP, through it’s stake in Rosneft, is clearly in the firing line now.”
The U.S. and the European Union set more aggressive sanctions on Russian companies because of the Kremlin’s continued support for separatists in eastern Ukraine. The measures affect Rosneft, natural-gas producer OAO Novatek, OAO Gazprombank and eight defense companies. The EU had a trade deficit of more than $120 billion with Russia last year, according to the International Monetary Fund.
U.K. equities extended their decline as a Ukrainian Interior Ministry official said that pro-Russian separatists shot down the passenger jet, killing 280 passengers and 15 crew. The self-proclaimed Donetsk People’s Republic said it did not attack the airplane. The Boeing 777 crashed near the town of Torez in eastern Ukraine, according to the ministry official.
BP fell 1.9 percent to 496.8 pence for the biggest drag on the FTSE 100. The energy company owns almost 20 percent of Russia’s Rosneft.
Separately, a U.S. judge said a trial in November 2015 will hear the state of Alabama’s claim for lost tax revenue and compensation following the 2010 Gulf of Mexico disaster. The blowout of the well operated by BP remains the world’s largest accidental oil spill.
Mothercare slumped 8.8 percent to 255 pence, the biggest decline on the FTSE All-Share index. The retailer of products for babies and parents said that sales dropped 1.2 percent in its home market after it reduced discounting.
Sports Direct International Plc (SPD) declined 2.2 percent to 697.5 pence after reporting full-year pretax profit that missed analysts’ estimates. The sporting-goods retailer posted income of 249.3 million pounds ($426.3 million), less than the 254.3 million-pound median estimate of analysts surveyed by Bloomberg.
Barclays Plc fell 2.7 percent to 210.2 pence after people with knowledge of the matter said a U.S. Senate committee will hold a hearing next week into products the bank sold to a hedge fund. The Senate Permanent Subcommittee on Investigations will meet to discuss what it calls abusive transactions by financial institutions. The products enable the hedge fund to avoid taxes, the people said.
ITV jumped 6.2 percent to 195.1 pence after Liberty Global acquired a 6.4 percent stake for 481 million pounds. It bought the holding from British Sky Broadcasting Group Plc, paying 185 pence a share.
Imperial Tobacco Group Plc rose 1.9 percent to 2,679 pence after Bank of America Corp. raised its rating on the maker of Gauloises cigarettes to buy from neutral. The brokerage said Imperial Tobacco’s purchase of brands from Reynolds American Inc. and Lorillard Inc. will make the company more competitive.
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