By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Oil firms led U.K. stocks lower on
Friday, tracking oil prices, as the prospects of a military strike
on Syria narrowed after the British Parliament voted against using
force.
The FTSE 100 index dropped 1.1% to close at 6,412.93, sending it
3.1% lower on the month.
Weighing on the benchmark, Royal Dutch Shell PLC (RDSB) lost
1.3%, BP PLC (BP) fell 1% and BG Group PLC shaved off 1.5%.
The losses for the energy sector, came as oil prices retreated
further on signs the West won't launch a military strike on Syria
in the imminent future after the U.K. Parliament late Thursday
rejected involvement in an intervention. In the U.S., however,
officials said the Obama administration would be prepared to strike
alone against Syria. Secretary of State John Kerry will make a
statement about Syria at 12:30 p.m. Eastern Time on Friday, the
State Department said.
Earlier in the week, crude-oil prices spiked to a more than
two-year high on worries the U.S. would launch an attack on Syria
after accusations the government used chemical weapons against
rebels.
The downbeat sentiment also weighed on U.K. banks on Friday.
Shares of Royal Bank of Scotland Group PLC (RBS) and HSBC Holdings
PLC (HBC) both dropped 1.6% and Standard Chartered PLC lost
1.4%.
Food and drinks makers were further on the decline after
Citigroup cut the European food and beverage sector to neutral from
overweight.
Shares of Diageo PLC fell 1.4%, Britvic PLC erased 0.8% and
Unilever PLC (UL) slipped 0.5%.
Outside the main index in the U.K., Bwin.Party Digital
Entertainment PLC sank 14% after the online gambling firm warned
that full-year revenue could fall as much as 17%.
On a more upbeat note, shares of Vodafone Group PLC (VOD)
advanced 0.7%, building on a 8.2% gain from Thursday. The upbeat
moves came after the telecom firm confirmed it is in talks with
Verizon Communications Inc. (VZ) to sell its 45% stake in their
joint venture, Verizon Wireless.
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