In the UK the FTSE 100 Index of leading shares slid 32.4 points, or 0.6%, to 5384 at its close this afternoon.
Carnival Corp. and Imperial Chemical Industries paced the decline as the price of oil rose after producers in the Gulf of Mexico evacuated staff and shut platforms in the path of Hurricane Rita.
Carnival, the world's largest cruise operator, slid 84p, or 2.8%, to 2,881p.
Imperial Chemical, the UK’s largest specialty chemical maker, dropped 8.25p, or 2.7%, to 293.5p.
Crude oil for November delivery gained as much as 3.1% to $68.27 a barrel on the New York Mercantile Exchange. The futures have surged 56 percent this year.
InterContinental Hotels Group, the world's largest hotelier fell 19p, or 2.6%, to 712.5p. Those who buy the stock today aren't entitled to the first-half dividend of 4.6p.
Antofagasta, Xstrata, Kingfisher, Gallaher Group and Hammerson also traded without the right to their latest dividends.
In the US, stocks have also started poorly the Dow Jones Industrial Average falling 56.43 points, or 0.5%, to 10,425.09 in morning trading. Retailers such as Sears Holdings Corp have fallen for a seventh day. Shares of Avon Products, which cut its 2005 forecast due to Hurricane Katrina and energy costs, have declined.Sears, owner of the larges US chain of department stores, was down $2.97 at $116.59. Office Depot In., the No. 2 office-supplies retailer, declined $0.89 to $27.75. Wal-Mart Stores Inc., the world's largest merchant, lost 25 cents to $42.96, poised for its lowest close since August 1999.
Avon, the No.1 direct-seller of cosmetics, slumped $3.59, or 12%, to $27.01.IFAonline
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