Headline shares were firmly lower at midday, with BP (LON:BP.) a major casualty as oil spillage woes grow, and heavyweight miners sliding on news that Australia is to hike taxes on resources companies. At high noon, 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. US stock futures fell as worries over Europe's sovereign debts continued to weigh. Dow Jones Industrial Average futures dropped 45 points, S&P500 futures eased 6.4 points to 1,192.2 and Nasdaq 100 futures fell to 2,016.45.

LONDON MARKETS

Weakness in commodity issues drove the main index down in London at midday, 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 25.7p at 549.8p, while Shell fell 44.5p at 1,930.5p and BG Group (LON:BG.) slid 42.5p to 1,070.5p on concerns over the wider damage the spill is doing to the industry.

Mining shares weakened on news that Australia aims to introduce swingeing new taxes on resources companies, with BHP Billiton (LON:BLT) tumbling to the foot of the FTSE league, down 93p at 1,932.5p, Rio Tinto (LON:RIO) off 102.5p at 3,276.5p and Xstrata Plc (LON:XTA) down 41.5p at 1,045p.

Indications that manufacturing growth in China has slowed pushed metals prices lower, with copper taking a major hit, forcing down Antofagasta (LON:ANTO) 39p at 960p. As a new volcanic ash cloud headed across the UK and Ireland, forcing airport closures and more flight cancellations, British Airways (LON:BAY) shares dived 7.8p at 220.5p and midcap peer Easyjet (LON:EZJ) fell 1.8p at 470.6p.

Banking shares were generally lower as details emerged of the terms of the latest Greece bail-out agreement and kept pressure firmly on financial markets, with Lloyds falling 2.69p at 63.44p, RBS off a penny at 53.35p and Barclays (LON:BARC) down 7.85p at 330.4p. Reports of a strong first quarter kept Standard Chartered (LON:STAN) 6p higher at 1,763p.  Insurer Prudential (LON:PRU) slumped 12.5p at 567p as investors digested reports that it was mulling the sale of its UK and US businesses to concentrate on Asia.  On the upside, fund managers took heart from record interim results at midcap Aberdeen Asset Management (LON:ADN), up…

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