FTSE slips as US possible attack on Iraq cools

The FTSE closed 0.4% down to 4118.90, led by energy stocks after concerns that lower oil prices will reduce earnings at BP and Shell Transport. The oil companies pulled the index down by 41 points. BP's shares dropped 24.5p, or 5.4%, to 427.5 after US Secretary of State Colin Powell said that a compromise over Iraq may be possible, reducing expectations of a military strike that might disrupt supply from the Middle East's fifth-largest oil producer. Shell Transport & Trading, owner of 40% of Royal Dutch/Shell Group, dropped 15.75p, or 3.7%, to 411.75. Another notable decline...