The FTSE 100 declined 0.7% in early afternoon, moving in line with pre-trade projections.
European equities and futures for the main US stock indexes were hit by tensions on the Korean peninsula, where North Korea and South Korea traded artillery attacks today, leaving two South Korean marines dead.
Meanwhile, investors are somewhat sceptical about Ireland’s bailout deal as borrowing costs for eurozone nations with massive sovereign debts rose today, while the euro fell.
Ireland has just agreed to accept financial aid from the European Union to support its banking system.
Tour operator TUI Travel (LON:TT) surged 4%, taking the lead in the FTSE 100.
Turbine and engine manufacturer Rolls Royce (LON:RR) and silver miner Fresnillo (LON:FRES) tacked on nearly 2%.
Retailer Kingfisher (LON:KGF) added 1.4%.
Insurer Old Mutual (LON:OML) and gold producer Randgold Resources (LON:RRS) climbed 1.1%.
Oil and gas engineering firm Amec (LON:AMEC) rose 1%.
Vedanta Resources (LON:VED) was at the bottom of the pile with a 3.2% loss. Sector peers Antofagasta (LON:ANTO) and Kazakhmys (LON:KAZ) shed 2.5%.
Insurer Legal & General (LON:LGEN), software developer Sage Group (LON:SGE) and caterer Capita Group (LON:CPI) declined 1.6%.
Banks Barclays (LON:BARC) and Standard Chartered (LON:STAN), chipmaker ARM Holdings (LON:ARM) and insurance focused investor Resolution (LON:RSL) were down 1.5%.
In the US, The Dow Jones Industrial Average (DJIA) and the S&P 500 index are projected to open with losses of 0.8% after shedding 0.2% on Monday.
US Q3 GDP and existing home sales data will be out in the morning Eastern Time, followed by the minutes from the latest meeting of the Federal Monetary Policy Committee.
Asian markets were in selling mode today. China’s Shanghai Composite Index declined 1.95%, Hong Kong’s Hang Seng tumbled 2.7% and South Korea’s KOSPI retreated 0.8%. Japan’s Nikkei 225 index went against the tide, advancing 0.9%.
Australia’s S&P/ASX 200 lost 1.2%.
Commodities
Oil prices declined with US light, sweet crude for January delivery sliding to US$80.89/barrel on the New York Mercantile Exchange (NYMEX), while January Brent Crude retreated to US$83.17/barrel.
Precious metals fell. Gold and silver dropped to US$1,357/oz and US$27.08/oz respectively. Platinum declined to US$1,636/oz.
Base metals followed.
Copper and nickel dropped to US$3.68/lb and US$9.54/lb respectively. Zinc declined to US$0.929/lb.