Source: Sharecast
The top-flight index was down 0.5% at 7,566.54.
General Qasem Soleimani was killed earlier on Friday at Baghdad airport in a strike ordered by US President Donald Trump. Soleimani was head of Iran’s elite Quds Force. Iran’s Supreme Leader, Ayatollah Ali Khamenei, vowed "severe revenge" for those behind the attack.
The US Pentagon said in a statement: "General Suleimani was actively developing plans to attack American diplomats and service members in Iraq and throughout the region.
"This strike was aimed at deterring future Iranian attack plans. The United States will continue to take all necessary action to protect our people and our interests wherever they are around the world."
Russ Mould, investment director at AJ Bell, said: "It's never likely to be good news for the markets when ‘World War III’ is trending on Twitter.
"What happens next for equities will depend on what form Iran’s promised ‘severe revenge’ takes and how nations which are more friendly to it, like China and Russia, respond."
Oil prices jumped as geopolitical tensions threatened supply, with West Texas Intermediate up 3.8% at $63.59 a barrel and Brent crude 3.8% higher at $68.90. Oil giants BP and Shell racked up strong gains, while Premier Oil, Tullow Oil and Wood Group also advanced.
Precious metals miners were on the rise as gold prices benefited from a flight to safety, with Polymetal, Hochschild, Centamin and Fresnillo all trading up.
On home shores, a survey released earlier showed that activity in the UK construction sector eased further in December amid weakness in civil engineering.
The IHS Markit/CIPS construction purchasing managers’ index fell to 44.4 from 45.3 in November, missing expectations for a reading of 45.9 and coming in below the 50.0 level that separates contraction from expansion for the eighth month in a row.
Civil engineering was the biggest drag as activity fell at the fastest pace since March 2009. The survey found that political indecision and delays with contract awards for new projects had led to falling business activity.
There was also a sharp drop in commercial work as clients chose to delay spending decisions ahead of the general election. Activity in the housebuilding segment declined for the seven month in a row in December, but the rate of decline was only modest.
Tim Moore, economics associate director at IHS Markit, said: "December data suggested that the UK construction sector limped through the final quarter of 2019, with output falling in all three major categories of work. Brexit uncertainty and spending delays ahead of the General Election were once again the most commonly cited factors highlighted by firms experiencing a drop in construction activity."
However, he also pointed out that forward-looking survey indicators provide some hope that the construction sector malaise will begin to recede.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said it will take at least a few months before the construction sector starts to benefit from the reduction in political uncertainty, given long time lags between commissioning projects and work beginning on the ground.
"Nonetheless, the Conservatives’ election victory means that firms solely focused on the domestic market likely will start to invest again, now that the threat posed by a Labour government has been extinguished."
Earlier, the latest survey from Nationwide showed that annual UK house price growth topped 1% in December for the first time in 12 months as a healthy labour market helped to offset economic uncertainty.
House prices rose 1.4% on the year compared to 0.8% growth in November, meeting analysts’ expectations. On the month, prices ticked up 0.1%, down from 0.5% growth in November but a touch better than expectations of no growth.
In UK corporate news, fashion retailer Next was lower, reversing earlier gains even after it raised full-year profit guidance as a colder November and improved stock availability provided a boost for sales over the Christmas period.
Gambling stocks were under pressure, with GVC Holdings, 888 and William Hill all weaker following reports the Gambling Commission is considering whether to ban VIP schemes in Britain. This follows a series of scandals in which customers were allowed to bet with stolen money or lose huge amounts without adequate checks on whether they could afford it.
On the upside, British American Tobacco and Imperial Brands were up after the US Food and Drug Administration said on Thursday that companies will have 30 days to stop making and selling cartridge-based vaping devices, including mint, fruit and dessert flavoured e-cigarettes. The ban does not apply to menthol or tobacco flavours and excludes vape pens.
BAT said in a statement: "Following a significant period of disruption and uncertainty, this regulatory clarity is a welcome step towards returning the US vapour market to stability."
Market Movers
FTSE 100 (UKX) 7,566.54 -0.50%
FTSE 250 (MCX) 21,896.99 -0.96%
techMARK (TASX) 4,184.08 -0.59%
FTSE 100 - Risers
Polymetal International (POLY) 1,215.50p 2.01%
British American Tobacco (BATS) 3,329.50p 1.98%
BP (BP.) 488.35p 1.56%
Royal Dutch Shell 'A' (RDSA) 2,287.00p 1.35%
Royal Dutch Shell 'B' (RDSB) 2,286.50p 1.24%
Imperial Brands (IMB) 1,896.20p 1.08%
Just Eat (JE.) 858.60p 0.73%
Smith & Nephew (SN.) 1,840.00p 0.46%
Burberry Group (BRBY) 2,209.00p 0.36%
Coca-Cola HBC AG (CDI) (CCH) 2,600.00p 0.31%
FTSE 100 - Fallers
easyJet (EZJ) 1,382.00p -3.36%
Evraz (EVR) 392.90p -3.25%
JD Sports Fashion (JD.) 807.80p -2.84%
Antofagasta (ANTO) 920.60p -2.58%
Royal Bank of Scotland Group (RBS) 238.20p -2.50%
Standard Life Aberdeen (SLA) 327.90p -2.41%
Smurfit Kappa Group (SKG) 2,874.00p -2.31%
International Consolidated Airlines Group SA (CDI) (IAG) 621.80p -2.26%
Prudential (PRU) 1,431.00p -2.25%
Hargreaves Lansdown (HL.) 1,920.50p -2.14%
FTSE 250 - Risers
Premier Oil (PMO) 102.40p 2.81%
Fresnillo (FRES) 660.80p 2.61%
Centamin (DI) (CEY) 129.65p 2.33%
Cairn Energy (CNE) 207.60p 1.76%
Bakkavor Group (BAKK) 147.40p 1.10%
Petrofac Ltd. (PFC) 386.70p 0.99%
Wood Group (John) (WG.) 390.40p 0.85%
TI Fluid Systems (TIFS) 266.50p 0.76%
Sophos Group (SOPH) 562.00p 0.64%
Network International Holdings (NETW) 639.00p 0.63%
FTSE 250 - Fallers
Galliford Try (GFRD) 170.00p -80.81%
Bovis Homes Group (BVS) 1,303.00p -5.65%
Kainos Group (KNOS) 750.00p -4.58%
William Hill (WMH) 186.80p -4.38%
Finablr (FIN) 165.90p -4.16%
4Imprint Group (FOUR) 3,300.00p -3.51%
Dixons Carphone (DC.) 137.40p -3.38%
Man Group (EMG) 155.90p -3.26%
Bank of Georgia Group (BGEO) 1,608.00p -3.25%
PPHE Hotel Group Ltd (PPH) 1,860.00p -3.13%
