FTSE 100, FTSE 250 down 0.6 each
SP Global revises lower BP39;s credit outlook, shares fall
Carnival up after Peel Hunt upgrades stock to buy

June 4 Reuters London stocks moved lower on Tuesday as investors assessed the chance of an earlier U.S. rate cut against a backdrop of faltering manufacturing activity that could hurt corporate profits, while energy stocks added to losses.

The bluechip FTSE 100 index and the midcap FTSE 250 dropped 0.6 each.

Energy stocks BP and Shell fell 3.4 and 1.9, respectively, after ratings agency SP Global revised lower BP39;s credit outlook and as oil prices slipped 1.

It39;s a messy old time for investors, falling oil is not great news for some of the big oil companies, which certainly do an awful lot in terms of balancing the FTSE 100, Danni Hewson, head of financial analysis at AJ Bell said.

The oil and gas sector fell to the lowest in two months.

Investors weighed the potential relief of a September rate cut by the Federal Reserve against the backdrop of a second consecutive dip in U.S. manufacturing activity that could erode revenue for global companies listed on the benchmark index.

Traders are pricing in a 60 chance of a cut by the Fed in September.

Adding to dour sentiment were India39;s elections where votecounting trends showed Prime Minister Narendra Modi39;s alliance falling short of a predicted landslide victory.

The FTSE is full of massive global players, and with questions asked about the way forward for India,…