Sharecast - The FTSE 100 was down 0.5% at 7,363.81. Meanwhile, UK borrowing costs rose, with the yield on the 30-year gilt hitting 5.209% - its highest level since 1998. Yields move inversely to prices.
Investors were bracing for a big week of earnings, with the likes of Google owner Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Meta Platforms all slated to report across the pond. In the UK, meanwhile, banks will be in focus, with Barclays (LON:BARC) kicking off the proceedings on Tuesday, while Lloyds (LON:LLOY), NatWest (LON:NWG) and Standard Chartered (LON:STAN) will also report.
Russ Mould, investment director at AJ Bell, said: "Markets remain edgy amid the ongoing conflict in the Middle East, with the FTSE 100 pulled lower by commodity stocks.
"This followed a reverse in oil prices on reports Israel plans to delay its ground invasion of Gaza. Any sign of de-escalation would be received positively for humanitarian reasons but also by investors wary of the risks of the war in Gaza spreading to other parts of the region or bringing in other actors.
"This week the US earnings season really hots up with earnings reports from a good chunk of the ‘Magnificent Seven’ of tech stocks who, like their cinematic counterparts, have been standing tall alone against a wave of malign forces this year.
"Expect more chatter about AI but that alone may not be enough to sustain these stocks, with valuations allowing little margin for error when it comes to the hard currency of revenue and earnings. Even in-line numbers may result in raspberries from the market."
In equity markets, Vistry fell as the housebuilder reiterated its full-year profit guidance but said house sales had failed to pick up as expected. In an update for the third quarter, Vistry warned that private sales activity had remained "subdued, without the normal seasonal pick up since early September and increased use of incentives".
Miners were under the cosh as commodity prices eased, with Anglo American (JO:AGLJ), Glencore (LON:GLEN) and Antofagasta (LON:ANTO) all down.
On the upside, retailers were on the rise, with Frasers, Ocado (LON:OCDO), Next, B&Q owner Kingfisher (LON:KGF) and Marks & Spencer among the best performers.
Keller Group (LON:KLR) surged after it lifted its full-year earnings outlook following an "exceptionally strong" first-half performance.
Addiction treatment drug maker Indivior was also a high riser after saying it has agreed to pay $385m to resolve the final lawsuit claims against it in the long-running Suboxone anti-trust case.
Flutter was the standout gainer on the FTSE 100 after Exane BNP Paribas (EPA:BNPP) named the stock its top pick in the gaming sector ahead of third-quarter earnings season after a recent rough patch for the industry.
Market Movers
FTSE 100 (UKX) 7,363.81 -0.52%
FTSE 250 (MCX) 16,936.24 -0.57%
techMARK (TASX) 4,014.20 -0.27%
FTSE 100 - Risers
Flutter Entertainment (CDI) (FLTR) 12,685.00p 1.89%
Frasers Group (FRAS) 801.50p 1.58%
Ocado Group (OCDO) 493.00p 1.29%
Hikma Pharmaceuticals (LON:HIK) 1,961.00p 1.08%
Next (NXT) 6,902.00p 1.00%
International Consolidated Airlines Group (LON:ICAG) SA (CDI) (IAG) 139.25p 0.91%
Kingfisher (KGF) 203.00p 0.89%
Marks & Spencer Group (MKS (LON:MKS)) 216.10p 0.84%
Informa (INF) 691.20p 0.79%
Rolls-Royce Holdings (LON:RR.) 200.50p 0.78%
FTSE 100 - Fallers
Fresnillo (LON:FRES) 524.00p -5.00%
Anglo American (AAL) 1,998.40p -3.04%
Glencore (GLEN) 424.40p -2.53%
BP (LON:BP.) 532.70p -2.33%
United Utilities Group (LON:UU.) 1,002.00p -2.24%
Antofagasta (ANTO) 1,294.50p -2.23%
SEGRO (SGRO) 685.80p -2.22%
Entain (LON:ENT) 914.60p -2.06%
BT Group (LON:BT.A) 111.70p -1.97%
Centrica (LON:CNA) 154.25p -1.91%
FTSE 250 - Risers
Keller Group (KLR) 769.00p 14.26%
Indivior (INDV) 1,604.00p 6.30%
4Imprint Group (FOUR) 4,585.00p 2.80%
Tyman (TYMN) 246.00p 2.71%
Bridgepoint Group (Reg S) (BPT) 173.20p 2.49%
Me Group International (MEGP) 140.60p 2.18%
Fidelity Emerging Markets Limited Ptg NPV (FEML) 589.00p 1.60%
FirstGroup (LON:FGP) 149.00p 1.43%
International Public Partnerships Ltd. (INPP) 121.60p 1.33%
Currys (CURY) 45.68p 1.33%
FTSE 250 - Fallers
Vistry Group (LON:VTYV) (VTY) 688.00p -5.10%
TUI (LON:TUIT) AG Reg Shs (DI) (TUI) 395.60p -3.79%
Just Group (LON:JUSTJ) (JUST) 72.60p -3.46%
CLS Holdings (CLI) 91.80p -3.37%
Energean (ENOG) 840.50p -3.22%
W.A.G Payment Solutions (WPS) 92.00p -3.16%
Harbour Energy (LON:HBR) 252.70p -2.96%
Hammerson (HMSO) 22.16p -2.89%
Centamin (DI) (LON:CEY) 80.80p -2.65%
Helios Towers (HTWS) 62.75p -2.56%
