By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- U.K. stock markets traded lower on
Friday, as news of a devastating earthquake and tsunami in Japan
combined with overnight losses on Wall Street to weigh on
sentiment.
The FTSE 100 index declined 0.8% to 5,797.79 in morning trading.
The benchmark closed down 1.5% in the prior session as global
growth concerns resurfaced and trouble in Libya continued to affect
oil prices.
On Friday sentiment was soured by a natural disaster. A powerful
earthquake hit Japan, triggering a devastating tsunami and a series
of tsunami alerts for places like Hawaii and the U.S. West
Coast.
In Tokyo, the Nikkei 225 index closed down 1.7% to 10,254.4
London markets opened in the red, weighed down by losses in the
insurance sector. Shares of Aviva PLC fell 2.2%, RSA Insurance
Group PLC declined 2.3% and Legal and General sagged 1.9%.
"News of the earthquake and tsunami in Japan has sent insurers
such as Royal & Sun Alliance and Aviva down a couple of percent
as investors remain risk averse," David Jones, chief market
strategist at IG Index, said in emailed comments.
Real estate stocks were also lower across the board with
Hammerson PLC off 1.2%, Land Securities Group PLC down 1.1% and
British Land Co. PLC off 0.7%.
Among individual movers software group Autonomy Corp. PLC fell
2%.
Still, small gains for a handful of mining and energy-related
stocks helped cushion losses.
Among mining stocks, Rio Tinto PLC (RIO) rose 0.5%. In the
energy sector shares of Tullow Oil PLC gained 0.7% after selling
off earlier this week, and shares of Cairn Energy added 0.6%.
Corporate news was thin on Friday, but away from the main index,
shares of J.D. Wetherspoon PLC rose 2%. The group reported a 9.2%
fall in fiscal first-half net profit, but a 7.2% rise in revenue.
It also warned of cost pressures into the next financial year.
.