At the close of business, the FTSE100 was down 59.97 points at 5,493.32 with the FTSE250 off 57.2 points at 10,308.8 and the FTSE Smallcaps 9.24 points lower at 2,951.53. Headline shares slumped to heavy losses, with BP (LON:BP.) a major casualty as oil spillage woes grow, and miners down on news that Australia is to hike taxes on resources companies. US stocks were sharply lower, European sovereign debt concerns taking the shine off reports of a 5.3% rise in pending home sales and upbeat manufacturing data. Approaching the close in London, the Dow Jones Industrial Average was down 223 points at 10,928, the S&P500 fell 28 points at 1,174 and the Nasdaq Composite slid 76 points to 2,422.

LONDON MARKETS

Weakness in commodity issues drove the main index down in London, with oil major BP (LON:BP.) a major casualty on concerns over the growing cost of containing the massive oil spillage in the Gulf of Mexico. BP (LON:BP.) shares sank 17p at 558.5p, while Shell fell 73p at 1,902p and BG Group (LON:BG.) slid 48.5p to 1,064.5p on concerns over the wider damage the spill is doing to the industry, as well as reaction to crude falling back to $83.50 a barrel.

Mining shares weakened on news that Australia aims to introduce swingeing new taxes on resources companies, with BHP Billiton (LON:BLT) tumbling 160.5p at 1,865p, Rio Tinto (LON:RIO) off 216.5p at 3,162.5p and Xstrata Plc (LON:XTA) down 85.5p at 1,001p. Indications that manufacturing growth in China has slowed pushed metals prices lower, with copper taking a major hit, forcing ENRC to the foot of the table, off 139p at 1,087p, and Antofagasta (LON:ANTO) 86.5p lower at 912.5p. As a new volcanic ash cloud headed across the UK and Ireland, forcing airport closures and more flight cancellations early in the day, British Airways (LON:BAY) shares dived 12p at 216.3p and midcap peer Easyjet (LON:EZJ) fell 7.6p at 464.8p.

Banking shares were firmly lower as details emerged of the terms of the latest Greece bail-out agreement and kept pressure on financial markets, with Lloyds falling 4.89p at 61.24p, RBS off 3.6p at 50.75p and Barclays (LON:BARC) down 15.25p at 323p. Reports of a strong first quarter could not halt a slide in Standard Chartered (LON:STAN), 21p lower at 1,736p. Insurer Prudential (LON:PRU) slumped…

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