Vodafone, M&S drag FTSE 100 lower for second day

LONDON (MarketWatch) — Shares of Vodafone and Marks & Spencer led the U.K. benchmark index lower on Tuesday after both companies reported full-year earnings, while oil giant BP declined after a legal setback related to the Deepwater Horizon disaster.

The FTSE 100 index (UK:UKX)  dropped 0.5% to 6,813.44, on track for a second straight day of losses.

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Vodafone Group PLC (UK:VOD)   (VOD)  posted the biggest drop in the index, sliding 4.3% after the company said full-year adjusted operating profit fell 37% and revenue slipped 1.9%.

Also among top decliners, Marks & Spencer Group PLC (UK:MKS)  dropped 2.7% after the U.K. retailer said pretax profit fell for the full year.

Shares of BP PLC (UK:BP)   (BP)  gave up 0.9% after an appeals court in New Orleans rejected the oil major's request for a review of the settlement case for victims of the Deepwater Horizon oil-spill disaster. BP spokesman Geoff Morrell said in a statement that the company was "disappointed" with the decision and that it is "considering its legal options".

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Dion Nissenbaum takes a look at the strange tale of an effort by private U.S. citizens, including some with ties to private security contractors, to arm Syrian rebels on their own. Photo: AP.

In data news in the U.K., April inflation rose to 1.8% from 1.6% in March, coming in higher than the consensus estimates of 1.7%. The Office for National Statistics said increased fares for air and sea travel helped lift consumer prices last month, suggesting the higher-than-expected inflation partly was due to the timing of Easter.

"Inflation is stabilizing close to the Bank of England's 2% target, giving little reason to keep interest rates at rock-bottom levels," Rob Wood, chief U.K. economist at Berenberg, said in a note.

The pound (GBPUSD)  advanced after the data, trading at $1.6829, up from around $1.6822 late Monday.

The main U.K. interest rate currently stands at a record low of 0.5%, and a rate hike would be supportive for the pound.

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