Source: Sharecast
The FTSE 100 was down 0.3% at 5,891.70.
Joshua Mahony, senior market analyst at IG, said: "With an element of profit taking coming into play as we head into the weekend. The ongoing risk-on phase that has been driving stocks sharply higher appears to be borne of the fact that even if Biden does take the White House, his progressive wings could be clipped by the likely inability to take both Senate and House. With Biden now having taken the lead in Georgia, the likeliness of a shift in the White House continues to grow by the day.
"Meanwhile, Trump’s claims that the election is being stolen seeks to sow the seeds of doubt that will no doubt infuriate both sides of the political spectrum. His desire to frame a likely defeat as the media and democrats conspiring to cheat Republicans out of the true result does little to help bring unity after an already volatile four-years. However, when it comes to actual political change, the growing divide between both sides will do little to help either party to further any notable policy which would need to be pushed through congress. After months of fractured negotiations over a second stimulus package, another split congress means we are unlikely to see a swift financial boost in the aftermath of this election."
On home shores, Brexit was in focus after the National Audit Office said UK trade with the EU will face "significant disruption" when the Brexit transition period ends.
The watchdog said it was "very unlikely" traders would be ready for checks the EU is due to impose at its borders and cautioned there wasn’t much time for UK ports to test new IT systems.
Investors will also be eyeing the release of the US non-farm payrolls report, unemployment rate and average earnings, all due at 1330 GMT.
In equity markets, RSA Insurance was in the spotlight after it confirmed it is in talks to sell itself for £7.2bn to a consortium comprising Canada's Intact Financial Corp and Tryg A/S of Denmark. The consortium has proposed paying 685p a share in cash for the FTSE 100 insurer. RSA would pay its proposed interim dividend of 8p a share.
The shares were down, having rocketed 46% into the close on Thursday on speculation of a takeover.
Other insurers were in the black, however, with Aviva, Legal & General, Prudential, Hiscox and Direct Line all up.
Marine services company James Fisher slid after it reported a decline in revenue as it said trading in the third quarter remained challenging due to Covid-related restrictions.
EasyJet was down after the budget airline said it would fly no more than 20% of capacity for the rest of the year after new coronavirus lockdowns in England, Germany, and France.
Aveva also fell after announcing a £2.84bn rights issue to partly fund its acquisition of US software group OSIsoft.
Global insurer Beazley was trading update as it said gross written premiums rose 16% in the year to date driven by rate increases across all its divisions.
Mecca Bingo and Grosvenor Casinos owner Rank Group rallied after saying it raised £70m in an equity placing to strengthen its balance sheet. The company placed 77.7m shares at 90p each, which is 4.3% premium to the closing share price on Thursday.
Housebuilder Redrow gained after it reported a rise in reservation values as customers look for homes with more space to work based on coronavirus lockdown experiences.
Market Movers
FTSE 100 (UKX) 5,891.70 -0.25%
FTSE 250 (MCX) 17,868.12 -0.34%
techMARK (TASX) 3,737.49 -0.48%
FTSE 100 - Risers
Tesco (TSCO) 217.50p 2.35%
Aviva (AV.) 278.10p 2.28%
Polymetal International (POLY) 1,866.50p 1.94%
Antofagasta (ANTO) 1,055.00p 1.49%
Morrison (Wm) Supermarkets (MRW) 164.10p 1.45%
Persimmon (PSN) 2,608.00p 1.36%
Fresnillo (FRES) 1,308.00p 1.24%
Burberry Group (BRBY) 1,460.50p 1.14%
Evraz (EVR) 366.80p 1.07%
Croda International (CRDA) 6,432.00p 1.01%
FTSE 100 - Fallers
Rolls-Royce Holdings (RR.) 69.40p -6.87%
Melrose Industries (MRO) 125.05p -3.29%
Auto Trader Group (AUTO) 582.00p -3.13%
Aveva Group (AVV) 4,050.00p -2.69%
RSA Insurance Group (RSA) 652.80p -2.57%
British Land Company (BLND) 376.20p -2.54%
Homeserve (HSV) 1,221.00p -2.32%
Avast (AVST) 488.80p -2.12%
JD Sports Fashion (JD.) 736.80p -2.02%
InterContinental Hotels Group (IHG) 4,146.00p -1.96%
FTSE 250 - Risers
Rank Group (RNK) 91.50p 6.03%
BMO Commercial Property Trust Limited (BCPT) 65.00p 4.84%
Hiscox Limited (DI) (HSX) 932.20p 4.13%
Clarkson (CKN) 2,090.00p 3.98%
Redrow (RDW) 457.00p 3.68%
Syncona Limited NPV (SYNC) 256.00p 3.43%
Sabre Insurance Group (SBRE) 243.00p 3.40%
TI Fluid Systems (TIFS) 218.50p 3.11%
Coats Group (COA) 61.90p 2.82%
Direct Line Insurance Group (DLG) 285.00p 2.78%
FTSE 250 - Fallers
Fisher (James) & Sons (FSJ) 835.00p -22.69%
easyJet (EZJ) 520.60p -4.83%
Network International Holdings (NETW) 208.80p -4.04%
Capita (CPI) 23.88p -3.98%
Mitchells & Butlers (MAB) 162.20p -3.80%
AO World (AO.) 382.50p -3.53%
Meggitt (MGGT) 286.60p -3.27%
Carnival (CCL) 883.60p -3.11%
Softcat (SCT) 1,094.00p -3.10%
Shaftesbury (SHB) 445.80p -2.88%