.LONDON FTSE 100 5912.1 Down 3% on week THE FTSE 100 index had its biggest one-day drop in two years on Friday.

BP and Cairn Energy dropped as crude oil slipped from its highest in a week. Anglo American led a retreat by metal and mining shares.

HSBC Holdings and Royal Bank of Scotland, the UK's two largest lenders, also fell. The FTSE 100 slid 129.9, or 2.2%, to 5912.1 as of the close in London, its steepest drop since 10 May, 2004.

The measure fell 3% this week. BP decreased 14p, or 2.1%, to 659.5.

Cairn Energy, which explores for oil and gas in Asia, retreated 67p, or 2.8%, to 2,348. Oil fell in New York for the first time in four days on Friday.

. EUROPE EuroStoxx 50 3475.24 Down 2.9% on week EUROPEAN stocks posted their biggest decline since August 2004 on concern that accelerating in"ation will lead to higher interest rates. HSBC and Allianz led a drop in financial shares, among the most sensitive to higher borrowing costs.

Philips Electronics and Siemens fell as the dollar slipped, eroding the value of their global sales in the US.

.NEW YORK DOW 11380.99, down 1.9% NASDAQ 2243.78, down 3.8% S&P 500 1291.24, down 3.8% US stocks fell as a jump in prices for imported goods and a weakening dollar raised concern that in"ation will accelerate. The Standard & Poor's 500 had its biggest weekly loss since October 2005. A gauge of energy stocks decreased 2.3% for the worst performance among 10 groups in the S&P 500.