Investors are worried that military intervention in Syria could trigger violence in other Middle Eastern countries and as a result, dealers have been taking money out of equities and investing in gold.
Away from the troubles in Syria, there is plenty of corporate news around this morning. 888 Holdings revealed a 7% increase in first-half revenues compared with the same period the year before. The company is aiming to replicate its European success in the US, and the share price is up 2.6% today.
G4S is up 2.8% after the company confirmed it is in the process of selling two of its Canadian businesses to raise cash to pay off debt. Companies tend to use this strategy when their credit rating is low.
Johnston Press is 0.8% lower after announcing a 9.8% drop in like-for-like sales for the first six months, compared with the same period last year.
Mark Carney will be speaking at 1.45pm. A positive outlook on the UK economy from the new Bank of England governor could see traders buy back into equities.