In a bad day for world markets, BP shares plummeted 13%, losing $US17 billion in a day as the costs of the Gulf of Mexico oil spill escalated.The plunge took the share price drop since the oilwell exploded on April 20 to 34%, bringing the total loss in ma
In a bad day for world markets, BP shares plummeted 13%, losing $US17 billion in a day as the costs of the Gulf of Mexico oil spill escalated.
The plunge took the share price drop since the oilwell exploded on April 20 to 34%, bringing the total loss in market capitalisation to nearly $US60 billion.
So far, nearly $US1 billion has been spent in efforts to control the deepsea spillage while eventual costs, including the cleanup, will be many times more.
The slump hit energy stocks on Wall Street, though other positive news on the construction and industrial fronts helped offset losses.
The Dow Jones Industrial Average finished down 112.61 points, or 1.1%, at 10,024.02.
The Nasdaq Composite Index closed 1.5% down at 2222.33 and the S&P 500 was down 1.7% at 1070.70, pulled down by the energy sector, which lost 2.9%.
US construction spending in April registered its biggest gain in nearly 10 years, while manufacturing activity expanded by more than expected.
Other markets: Europe steady, Asia down
European stocks ended broadly flat, staging a late recovery as Wall Street advanced on some better-than-expected US economic data.
Earlier, the markets had dropped as the euro hit a fresh four-year low against the dollar as concerns continued over the sovereign-debt crisis.
The pan-European Stoxx 600 Index closed 0.1% higher at 245.34, but the UK's FTSE 100 ended 0.5% lower at 5163.20, hit by the BP slump. France's CAC-40 was off 0.1% at 3503.08 and Frankfurt's DAX added 0.3% to 5981.27.
Asia's major stock markets closed lower on signs of a slowdown in the pace of China's economic growth as measured by a purchasing managers’ index.
The Shanghai Composite index closed 0.9% lower after briefly crossing into positive territory. Hong Kong's Hang Seng Index finished 1.4% lower. Japan's Nikkei Stock Average lost 0.6% and Taiwan's Taiex slipped 1.2%.
Thailand's SET Index fell 1.3%, India's Sensex retreated 2.2%, Indonesia's JSX Composite dropped 2.6% and Singapore's Straits Times Index ended 1.4% lower.
Commodities: Oil down, gold up
Crude-oil futures weakened again in a volatile session that had crude swinging between $US75 and $US72 a barrel.
Light, sweet crude for July delivery settled $US1.39, or 1.9%, at $US72.58 a barrel from Friday's close in New York ahead of the long weekend.
North Sea Brent crude on London's ICE futures exchange settled $US1.94, or 2.6%, lower at $US72.71 a barrel.
Gold rose to its highest level in nearly two weeks amid continuing concerns about problems in the European banking system and less-rapid manufacturing growth in China.
Gold for August delivery in New York was up $US12.50, or 1%, at $US1227.50 an ounce. The contract peaked at $US1230.20, its strongest level since May 18.
Currencies: Dollar up, euro down
The dollar gained modestly against most of its rivals, taking advantage of better-than-expected US economic data and also benefiting from investors shunning riskier assets.
The euro was at $US1.2276 from $US1.2304 late on Monday. The dollar was at ¥91.16 from ¥91.18, while the euro was at ¥111.90 from ¥112.19.
The UK pound was at $US1.4677 from $US1.45451.
