By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K.'s benchmark stock index dropped for
a second straight day on Wednesday on ongoing fears of a U.S.
military invention in Syria, although oil firms got a boost from
the tension as oil prices jumped.
The FTSE 100 index lost 0.4% to 6,417.15, adding to a 0.8% loss
from Tuesday.
The weakness came on the back of heightened fears that the U.S.
will launch a strike against Syria, after allegations that forces
loyal to the government of Bashar al-Assad used chemical weapons
against rebels. White House spokesman Jay Carney said on Tuesday
that President Barack Obama is still consulting with allies and
members of Congress on Syria, but said there "must be a
response."
The uncertainty sent waves of nervousness through the financial
markets with global equity markets moving sharply lower and oil
prices (CLV3) jumping above $110 a barrel, the highest level in
more than two years.
The move in oil prices lent support to London's oil firms.
Shares of Tullow Oil PLC gained 2.4%, Royal Dutch Shell PLC added
1.7%, BG Group PLC rose 1.1% and BP PLC (BP) picked up 1%.
Mining firms, however, were among sectors on the decline.
Antofagasta PLC lost 2%, Rio Tinto PLC (RIO) dropped 1.3% and BHP
Billiton PLC (BHP) gave up 0.8%.
Among miners outside the main index in London, shares of
Polymetal International PLC dropped 6.4% after the precious-metals
miner said it swung to a loss in the first half of 2013 as revenue
declined 6%.
Shares of Meggitt PLC fell 1.2% after the aerospace and defense
group agreed to take over Piezotech LLC for $41.2 million.
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