REFILE-Weak oils, banks pull FTSE lower

(Repeats to remove extraneous text in headline)

* FTSE 100 ends off 0.8 percent

* BP drops on fresh Gulf slick concerns; energy down

* Banks fall on Europe debt exposure, tax fears

By Jon Hopkins

LONDON, June 8 (BestGrowthStock) – Britain’s FTSE 100 (.FTSE: ) share
index fell on Tuesday, led down by energy shares as BP (BP.L: )
dropped again on fresh Gulf of Mexico oil slick worries and
banks which were hit by euro zone debt concerns and the threat
of punitive taxes.

By the close the FTSE 100 was off 40.91 points, or 0.8
percent at 5,028.15 after a choppy session, having recovered
from an intraday low of 4,984.66.

“It has been a bit miserable again today, with the bad news
over the past few days for BP, and the banks holding sway,” said
David Morrison, market strategist at GFT Global.

“With the FTSE testing the psychologically and technically
significant level at 5,000 … it’s all a little bit worrying.

Energy shares were the biggest blue-chip fallers, led lower
by BP (BP.L: ) which dropped 5 percent after U.S. president Barack
Obama said that he wanted to know “whose ass to kick” over the
Gulf of Mexico oil spill, the worst enviromental disaster the
U.S. has faced. [ID:nN08211982]

Royal Dutch Shell (RDSa.L: ), Cairn Energy (CNE.L: ), and Tullow
Oil (TLW.L: ) shed 0.5 to 1.2 percent, failing to benefit from a
firmer crude price (CLc1: ), although BG Group (BG.L: ) added 0.5
percent after a closing auction rally.

UK-focused banks were poor performers on twin concerns over
the euro zone debt situation, and the threat of possible levies
on lenders.

European finance ministers sought agreement on Tuesday on
how to make banks pay for financial crises. [ID:nLDE6570M1]

Meanwhile, in a direct warning to British investors, ratings
agency Fitch said the UK faced a formidable fiscal challenge,
sending up the cost of protecting British government debt
against default. [ID:nWLA5820]

Lloyds Banking Group (LLOY.L: ), Barclays (BARC.L: ), Royal Bank
of Scotland (RBS.L: ), and Standard Chartered fell 1.9 to 4.1
percent. But global bank HSBC (HSBA.L: ) added 0.6 percent.

TESCO BOSS CHECKS OUT

Retailer Tesco (TSCO.L: ) shed 2.4 percent as investors
reacted with uncertainty after Terry Leahy, the retailer’s
long-standing boss, announced he would retire in March 2011.

Tesco said Leahy will be succeeded by lifelong company man
and head of international business Philip Clarke.

In the United States the Dow Jones industrial average index
(.DJI: ) was 0.3 percent higher by London’s close after a see-saw
early session, helped by positive comments on the U.S. economy
from Federal Reserve chairman Ben Bernanke.

On the upside among UK shares, miners rose with a firming in
metals prices following recent sharp falls. Fresnillo (FRES.L: ),
Randgold Resources (RRS.L: ), BHP Biliton (BLT.L: ), Anglo American
(AAL.L: ), and Antofagasta (ANTO.L: ) added 0.8 to 4.6 percent.

Temporary power equipment supplier Aggreko (AGGK.L: ) was also
a top FTSE 100 gainer, up 3.9 percent, after it said full-year
performance should be significantly better than expected as it
benefited from contract wins including for the World Cup soccer
tournament.

Aggreko also benefited from hopes of a possible bid war at
mid-cap peer Chloride (CHLD.L: ), ahead 19.4 percent as investors
bet that U.S. firm Emerson (EMR.N: ) could counter an agreed
takeover offer for the British firm from ABB (ABBN.VX: ).

Takeover interest also saw security firm G4S (GFS.L: ) climb
1.6 percent. Newspaper The Daily Mail’s Market Report section on
Tuesday reported revived rumours of a private equity consortium
led by Kohlberg Kravis Roberts lining up a 5.3 billion cash
offer worth 375 pence a share for the security provider.

Stock Market

(Editing by Greg Mahlich)

REFILE-Weak oils, banks pull FTSE lower