Escalating tension in the Middle East weighs on markets as Turkish fighters down a Russian jet near the border with Syria.
Leisure stocks and airlines in particular bear the brunt of the pressure which sees the FTSE 100 index trade 0.8% lower at 6,257 and the FTSE 250 fall 0.7% to 16,988.
Sterling trades flat against the dollar at £1.512 and yields on 10-year UK government bonds fall a couple of basis points to 1.85%.
Bucking the trend is outsourcer and air rescue contractor Babcock International (BAB), up 4.2% to £10.46, as it reports a record £20 billion order book in a half-year results update. Revenue in the six months to September 2015 gains 12% helped by the acquisition of air rescue and oil and gas grew transport business Avincis.
Cinema group Cineworld (CINE) slips 2.8% to 520.5p despite reporting an 11.9% rise in revenues for the 46 weeks to 19 November, with admissions growth in all territories except Slovakia. The group says the fourth quarter has started strongly with the release of Spectre on 26 October and it is on track to be in line with full-year market expectations. The stock has been falling recently on concerns about the weaker film slate in 2016.
Harvester and Toby Carvery owner Mitchells & Butlers (MAB) edges up 1.5% to 353.2p on news it is to resume paying a dividend in full year 2015 with a final dividend of 5p. Like-for-like sales in the 12 months to 26 September edged up by 0.8% but sales in the first eight weeks of the new financial year are down by 1.6% due to the 'highly competitive' market. The group says it will build a more balanced business, instill a more commercial culture and increase the pace of innovation to address the challenging market environment.
PR and marketing firm Creston (CRE) slumps 17.2% to 115.1p as the weak euro and reduced ad spending hits first half revenues. As a result the company says numbers for the 12 months to 31 March 2016 will be 'slightly' below expectations.
Falkland Oil & Gas (FOGL:AIM) is up 5.2% to 10.1p as it recommends an all paper merger with fellow Falklands oil explorer Rockhopper (RKH:AIM) - itself down 1.8% to 35.1p.
Home improvement goliath Kingfisher (KGF) has its wings clipped, off 2.6% at 336.2p, on third quarter disappointment. Though like-for-like sales edged up 2.6%, higher store development costs in France and Poland, softer French market conditions and a drop in UK gross margins conspire to cause full-year profit downgrades for the B&Q-to-Castomorama owner.
Better-than-expected full-year results fuel a 1.5p gain to 71.5p for franchised automotive retailer Cambria Automobiles (CAMB:AIM). Steered by CEO Mark Lavery, Cambria speeds in with a 43% year-on-year pre-tax profit gain to £7.7 million, beating recently upgraded forecasts, which are nudged up again on a positive outlook statement.
Specialist retailer Pets at Home (PETS) cheapens 2.5% to 276p despite delivering in-line interims, as analysts downgrade forecasts to reflect higher wage costs and investment in other areas of the business.
Testing device-maker Immunodiagnostic Systems (IDH:AIM) plummets 16.6% to 225p on pre-tax profits 70.1% lower at £827,000 in the six months to 30 September as competition continues to bite. Second half revenues are expected to be lower than the £19.3 million recorded in the first half.
Drugs-through-the-skin specialist Futura Medical (FUM:AIM) advances 6.4% to 24.7p on management preparing to file topical pain relief candidates TPR100 and TIB200 for approval with the European regulator after being told that no further tests are needed to prove they work. Click here for a further look at the business.