hr: Money

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UK stocks declined this week for the third day. This decline was headed by travel companies as well as banks, following a New York oil rally and a report that revealed the worsening state of the labor market in the United States which gets increasingly severe as US unemployment rate exceeded May forecast.

As is the usual case with airline companies, British Airways Plc is closely tied to fuel prices and expectedly declined as crude oil soared above $130 per barrel. Standard Life Plc also led financial companies’ decline following Deutsche Bank AG’s recommendation regarding the selling of investors’ shares. However, commodity producers such as BHP Billiton Ltd. and Tullow Oil Plc, realized some profits, which in a way has curbed declines in these companies.

As oil prices rebound sharply we can see how volatile the market can be. It is indeed a dangerous thing to just begin playing those stocks that stand to lose from surging oil prices such as airlines.

Europe’s biggest airling, the British Airways, lost 7.2 percent or 236 pence. The world’s largest cruise-line company, Carnival Plc, declined 3.4 percent to 1,875 pence.

The FTSE 100 Index has gone down 54.8, or 0.9 percent, to 5,940.5 at 3:39. This week, it has extended the loss to 1.8 percent. Whereas, earlier, the measure gained up to 1.3 percent. As the regards the FTSE All-Share Index, it came down too by 0.5 percent.