26 July 2005, 12:19  London shares lower as BP fails to inspire

Leading shares were lower in opening deals as an uninspiring trading update from oil heavyweight BP added to a weak close on Wall Street last night, dealers said. At 8.20 am, the FTSE 100 was down 5.1 points at 5265.1, with the broader indices mixed. Meanwhile, US stocks ended at their weakest levels of the day, after a volatile session which saw early gains wiped out as crude rose above 59 usd and by a mixed bag of earnings. The Dow Jones Industrial Average closed down 54.7 points at 10,596 and the Nasdaq composite was down 13 points at 2,166. Across Asia overnight the gloom continued, with the Nikkei 225 index closed 24.69 points down at 11,737.96, while the Hang Seng was off 29.71 points at 14,764.32 by midday. Still in Asia, oil prices came off yesterday's one-week highs as the market weighed the prospect of increasing stocks in the US against projected higher demand in China. And back in London, BP knocked sentiment after the oil giant delivered only slightly better-than-expected second quarter earnings. The world's second largest oil company reported a 29 pct rise in second quarter earnings, buoyed by record high crude prices. But one dealer noted the dividend was slightly disappointing, saying that "all in all the numbers were good, but not a blowout". Another dealer argued the one-off charges were a little confusing and may weigh on sentiment, with sentiment further knocked by light numbers from Norsk Hydro.

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