London open: Stocks nudge lower as safe havens rally on geopolitical tensions

London stocks nudged just a touch lower in early trade, with investors reluctant to make any bold moves as geopolitical tensions intensified after the US destroyed a Syrian airfield and ahead of the non-farm payrolls report.

At 0825 BST, the FTSE 100 was down 0.1% to 7,297.76, faring a little better than its European counterparts, with the Stoxx Europe 600 index down 0.4%.

Meanwhile, oil prices gained ground on the back of the US missile strike amid concerns about disruption to supply in the region, with West Texas Intermediate up 1.2% to $52.31 a barrel and Brent crude 0.9% higher at $55.44.

Gold and silver prices were up more than 1% while the yen rallied as investors opted for safe haven assets. The yellow metal rose to a fresh five-month high of $1,269 an ounce on news of the air strike.

US President Donald Trump said he ordered the missile strikes following the deadly chemical attack that took place earlier in the week.

US Secretary of State Rex Tillerson said late on Thursday that there was "no doubt" Syrian President Bashar Assad was behind the poison gas attack that killed dozens of Syrian civilians.

Accendo Markets analyst Mike van Dulken said: "This is the first major event of a Trump presidency that is still very much in its infancy. The timing may also prove pivotal as he spends a second day with Chinese President Xi. So far so cordial, but markets are eager for something tangible. Trump already joked he has got nothing so far but friendship; Syrian intervention may make relationships even more strained than they already were. And not just with China; Russia and Iran too."

"Data-wise, it’s all about this afternoon’s monthly US jobs report, and the widely watched non-farm payrolls print, which gives us the latest lay of the land in terms of stateside employment and whether that half of the Fed’s dual mandate continues to improve at a pace that justifies further rate rises."

The non-farm payrolls report and the unemployment rate are due at 1330 BST. The US ADP employment report on Wednesday came in ahead of analysts' expectations, leading to upgrades to estimates for the payrolls number, putting the consensus forecast at around 174,000.

Ahead of the payrolls, market participants will eye UK manufacturing and industrial production figures at 0930 BST, along with the trade balance.

In corporate news, oilfield services provider Hunting was on the front foot after saying its chief executive Dennis Proctor will step down from the role in 2017 once a replacement has been appointed.

Model train maker Hornby surged as it said it has completed the first phase of its turnaround plan.

Aberdeen Asset Management got a boost after RBC Capital Markets upgraded the stock to 'outperform', while Ocado slumped as UBS cut the stock to 'sell' from 'buy'.

Market Movers

FTSE 100 (UKX) 7,297.76 -0.07%
FTSE 250 (MCX) 19,090.49 -0.19%
techMARK (TASX) 3,415.75 -0.20%

FTSE 100 - Risers

Randgold Resources Ltd. (RRS) 7,275.00p 2.39%
Standard Life (SL.) 364.10p 2.33%
Sainsbury (J) (SBRY) 258.10p 1.45%
Tesco (TSCO) 187.75p 1.38%
BAE Systems (BA.) 642.00p 1.26%
Fresnillo (FRES) 1,613.00p 1.19%
Royal Dutch Shell 'A' (RDSA) 2,137.50p 1.04%
Royal Dutch Shell 'B' (RDSB) 2,228.00p 0.93%
Morrison (Wm) Supermarkets (MRW) 232.40p 0.74%
BP (BP.) 466.95p 0.54%

FTSE 100 - Fallers

Anglo American (AAL) 1,214.50p -2.45%
Antofagasta (ANTO) 844.50p -1.92%
ITV (ITV) 212.70p -1.85%
Rio Tinto (RIO) 3,199.00p -1.80%
Next (NXT) 3,978.00p -1.58%
Wolseley (WOS) 4,885.00p -1.41%
Glencore (GLEN) 315.15p -1.32%
BHP Billiton (BLT) 1,258.50p -1.22%
Royal Bank of Scotland Group (RBS) 235.60p -0.88%
Lloyds Banking Group (LLOY) 63.03p -0.88%

FTSE 250 - Risers

Aberdeen Asset Management (ADN) 273.60p 2.36%
Polymetal International (POLY) 1,051.00p 1.55%
Hunting (HTG) 596.00p 1.36%
P2P Global Investments (P2P) 845.00p 1.20%
G4S (GFS) 310.30p 1.07%
Big Yellow Group (BYG) 748.00p 1.01%
Syncona Limited NPV (SYNC) 145.50p 0.83%
Amec Foster Wheeler (AMFW) 562.00p 0.81%
Synthomer (SYNT) 480.80p 0.73%
Aldermore Group (ALD) 231.60p 0.70%

FTSE 250 - Fallers

Ocado Group (OCDO) 235.00p -6.75%
Kaz Minerals (KAZ) 469.20p -2.64%
Marshalls (MSLH) 357.50p -2.40%
Ferrexpo (FXPO) 167.60p -1.82%
Vedanta Resources (VED) 813.50p -1.75%
Evraz (EVR) 234.60p -1.68%
Hastings Group Holdings (HSTG) 269.80p -1.42%
Petra Diamonds Ltd.(DI) (PDL) 131.10p -1.35%
Petrofac Ltd. (PFC) 884.50p -1.34%
Acacia Mining (ACA) 446.00p -1.33%