Top-flight shares were in negative territory as markets stayed muted in the wake of the tragedy in southern France.
The FTSE 100 Index fell 10.47 points to 6,644.00 after a lorry ploughed through crowds gathered for Bastille Day celebrations in Nice, killing at least 84.
Travel stocks lost ground following the events, with budget airline EasyJet PLC (LON:EZJ) falling 3.2% to 1,134p.
Among the main risers were banks as uncertainty eased a little following the appointment of new British Prime Minister Theresa May.
Royal Bank of Scotland PLC (LON:RBS) led the way with a 2.4% gain to 186.6. Barclays PLC (LON:BARC) also lifted 1.35% to 150p.
Business support services group DCC Plc (LON:DCC) rose just under 1.7% to 6,785p. The company announced today that profits would be ahead of expectations, while trading met forecasts.
On the economic front, the pound held onto the majority of the growth it managed following the Bank of England’s decision on Thursday not to cut interest rates this month. Sterling was up 0.5% against the dollar at 1.34.
But there was bad news from the UK construction industry, where data showed output dropping 2.1% in May month-on-month.
In small-cap world, Sepura plc (LON:SEPU) was up 29% at 47p after the communications group won a US$34mln contract from the New York City Transit authority.
Mineral sands firm Sierra Rutile Limited (LON:SRX) gained 10.4% to 29.25p after forecasting full-year output at the upper end of guidance as it unveiled a strong second quarter, in which rutile production rose 29% compared to the first.
But Regency Mines Plc ("Regency" or the "Company"), the natural resource development and investment company with interests in oil and mineral exploration, announces an update on the Mambare Nickel Project in Papua New Guinea.
But shares in Regency Mines Plc (LON:RGM) backtracked 7.1% to 0.345p after a joint venture partner on the Mambare nickel-cobalt laterite project in Papua New Guinea, which had been unable to meet its shares of spending commitments, indicated an intention to do so.
Preview at 6.55am
Britain's blue chips are set to continue lower this morning after the BoE yesterday decided to keep interest rates on hold and after Asian stocks went higher after night amid positive Chinese data.
Yesterday, was a big day on the UK political front with new PM Theresa May making sweeping changes as she unveiled her new-look cabinet.
The focus now turns to how the Brexit negotiations will start to play out.
Meanwhile, the Old Lady of Threadneedle Street's monetary committee, which has already held rates at a 300-year low of 0.5% since 2009, decided that more data was necessary post-Brexit to assess whether a rate cut was necessary, which sent shock waved through markets.
Away from the financial agenda, news today will inevitably focus also on the tragedy in Nice after a terror attack claimed the lives of over 80 people celebrating Bastille Day.
FTSE100 finished down 0.34% or 15 at 6,654, and is today called to open 25 lower by spreadbetter IG Index.
Data showing that China's economy had expanded by a better-than-expected 6.7% in the second quarter boosted some Asian stocks overnight. The Nikkei 225 in Japan is up 0.84% to 16,515, although the Shanghai Composite Index is near flat, down two points.
On Wall Street, US stocks once again reached new highs. The Dow Jones added 135 at 18,506, while the S&P500 gained 0.53% to 2,163.
IG Index writes that the result of the EU referendum on the UK’s continued membership within the European Union has had major consequences.
"There has been a rebound in stocks since, although some markets have fared better than others. The pound remains under pressure. Markets are set for more volatility and steep price movements," it said.
"The prudent investor will be looking for ‘refuges’ – assets which remain stable or even appreciate when there’s a lot of market turbulence."
City Pages
'Pound on track for its best week since 2009 after Bank of England leaves interest rates unchanged- The Telegraph.
'Brexit blow to family finances will be significant, says Bank- The Times
'At least 80 people dead as truck crashes into crowds at Bastille Day celebrations in Nice' - CITY AM
European Banks face €30bn-€40bn capital bill after Brexit' - FT.