Market News

BP shares touch 13-year low as cost concerns weigh

Shares in BP (LSE:BP.L  - News) fell to a 13-year low on Tuesday on concerns over the oil major's exposure to costs associated with the massive oil spill in the Gulf of Mexico.

BP extended losses to touch a trough of 332.75 pence, its lowest since late February 1997.

Confidence in the oil giant was further undermined as chief executive Tony Hayward retreated from daily management of the oil spill crisis and dodged a conference appearance.

World stocks down as Europe debt fears creep back

World stock markets mostly fell Tuesday as renewed concern about Europe's debt crisis overshadowed the initial enthusiasm over China's decision to let its currency rise.

Investor sentiment was undermined after Fitch downgraded its debt rating on BNP Paribas SA -- the largest bank in the eurozone by deposits -- by one notch Monday, reviving worries that Europe's sovereign debt mountain will slow growth and undermine the financial system. Fitch slashed BNP's long-term rating to AA-minus from AA on deteriorating asset quality.

An unexpected rise in German business sentiment failed to cheer markets.