The Chancellor’s choice of Bank of England governor failed to liven markets as fears over the approaching fiscal cliff in the US continued to trouble investors.
The FTSE 100 Index was 32.42 points lower at 5786.72 as US markets reopened after Thanksgiving looking for a political solution to the US debt crisis.
The Dow Jones Industrial Average was lower as the London market closed after a White House report warned of the negative impact the so-called fiscal cliff - a series of automatic tax hikes and spending cuts - could have on consumer spending.
The pound was down against the dollar and the euro at 1.60 and 1.23 respectively after leading think tank, the Institute of Fiscal Studies, warned austerity could last until 2018 as George Osborne is forced to extend spending cuts.
The softer market performance comes after London’s top flight closed its strongest week of the year on Friday.
Election results in the Spanish region of Catalonia that saw separatists gain ground also added to investor worries.
The biggest FTSE 100 risers were International Consolidated Airlines Group up 1.4p at 170.4p, British American Tobacco ahead 28p at 3252p, Resolution Limited up 1.1p at 234.9p and Imperial Tobacco ahead 11p at 2495p.
The biggest FTSE 100 fallers were Barclays Plc down 13.7p at 240.5p, Lloyds Banking Group off 1.3p at 45.1p, Royal Bank of Scotland down 8.9p at 285.1p and Kazakhmys Plc off 14p at 679.5p.
