The FTSE 100 started the week in the red as tensions in the Middle East continued to rise.
Taking their cue from Asian stock markets, the main European markets all started lower with uncertainty high as investors grew increasingly concerned over possible Iranian retaliation.
Poor US manufacturing data with the PMI for December reading at 47.2, well below the 49 figure expected, also weighed on sentiment.
Shortly after trading started, the UK’s benchmark index was down 0.39%, or 29.86 points, to 7,592.54.
Catering giant Compass (CPG) dipped 0.74% lower to £18.76 after announcing that chairman Paul Walsh will step down following six years in the role to ‘focus on his other business interests’. The firm said Walsh will stay on until a successor is found.
Online financial trading platform Plus500 (PLUS) jumped 4.1% to 888p as it revealed in a trading update that it expects to report revenue of $354m for the year to 31 December.
Earnings before interest, tax, depreciation and amortization (EBITDA) for the year is expected to be $190m. The board is ‘pleased’ with this performance, which reflects a ‘much improved’ second half compared to the first half.
Healthcare operator NMC Health (NMC), subject of a short selling attack from hedge fund Muddy Waters, fell 3.7% to £16.85 after confirming the makeup of its independent review oversight committee.
NMC said the review will focus initially on confirmation of its cash balances as at 15 December 2019 and will be published ‘as soon as possible’.
The company added that the remainder of the review is expected to be completed, and its findings published, ‘well in advance of the finalisation and announcement of the company's 2019 full year results.’
Life insurance business Prudential (PRU) moved 2.4% lower to £14.15 as it entered into an insurance partnership with a Vietnamese bank.
The 20-year agreement with SeABank becomes effective from April 2020 and will provide the bank’s customers with life insurance products.
As part of the deal, Prudential Vietnam will become the preferred life insurance provider to BRG Group Joint Stock Company, a conglomerate in Vietnam with around 10m customers.
Pharmaceutical giant AstraZeneca (AZN) dropped 1% to £76.24 after it said its drug to treat hyperkalaemia had been approved in China.
The company’s drug Lokelma - used to treat adult patients with elevated levels of potassium in the blood (hyperkalaemia) - was approved by the National Medical Products Administration.
In a separate statement, AstraZeneca also announced the US Food and Drug Administration (FDA) had accepted its application and granted priority review for a drug to treat heart problems with diabetes patients.
Veterinary pharmaceuticals business Dechra (DPH) dropped 0.95% to £29.12 after it agreed terms to acquire the global rights to the Osurnia product portfolio, used to treat dog ear inflammation, from Elanco Animal Health for $135m.
Under the terms of the deal, Dechra may be required to pay Elanco a break fee of $13.5m for failing to perform certain actions by 24 June 2020 or if the transaction was terminated by Dechra prior to 20 April 2020, it added.
