London open: Stocks fall as geopolitical risk remains high
- Gaza fighting continues
- Tensions still high after Malaysia Airlines crash in Ukraine
- Tesco rises as investors welcome CEO departure despite profit warning
techMARK 2,791.37 -0.44%
FTSE 100 6,724.54 -0.37%
FTSE 250 15,430.53 -0.81%
UK stocks eased on Monday morning as continued fighting in Gaza and uncertainty surrounding tensions in Ukraine capped risk appetite.
The FTSE 100 was 0.4% lower at 6,725.
While US markets performed well last week, shrugging off heightened geopolitical risks, "Europe and Asia can't quite shake off the possible ramifications of more sanctions against Russia and the intensifying situation in the Middle East," said Jonathan Sudaria, a dealer at Capital Spreads.
"With the turn of events still evolving at a rapid pace, traders will continue to struggle to accurately discount what is most relevant."
Over the weekend, calls came from the UN Security Council for a ceasefire between Israeli and Palestinian forces, which are currently engaged in a deadly battle in Gaza.
Meanwhile, UK Prime Minister David Cameron has signalled his support for additional sanctions to be made against Russia, and will today inform MPs about the steps being taken to gain "unfettered access" to the crash site in Ukraine. US Secretary of State John Kerry has also demanded that Russia take responsibility.
Tensions between Russia and Ukraine have escalated as the two nations pointed blame towards each other over the downing of a Malaysia Airlines plane in Ukraine on Thursday which killed all 298 people on board.
The United Nations (UN) Security Council will today vote on a resolution to make sure those responsible are held accountable.
Tesco rises despite profit warning as Clarke quits
Retail giant Tesco this morning unveiled a profit warning after a "challenging" second quarter, but shares gained after investors welcomed the resignation of its boss Philip Clarke. Clarke "agreed [...] that this is the appropriate moment to hand over to a new leader with fresh perspectives and a new profile", the company said, and will be replaced by Unilever exec Dave Lewis.
As such, Unilever's share price took a knock today, along with Tesco's supermarket rivals Wm Morrison and J Sainsbury.
Engineering support services group Babcock was in demand after saying that the new financial year "has started well" with activity levels remaining high.
Media firm BSkyB fell as it announced the purchase of a 70% stake in UK production group Love Productions, which makes programmes such as the Great British Bake-Off.
( ADVFN )
