US EU Stocks Fall Gold spikes as Passenger Jet Shot Down Over Ukraine

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U.K. stocks fell the most in a week as the U.S. and the European Union imposed additional sanctions on Russia and a Malaysian passenger jet was shot down in the Donetsk region of eastern Ukraine.
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.
Shot Down
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.

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Last Edited by Uncle Fuck Stick on 07/17/2014 01:22 PM