FTSE 100 falls as travel shares affected by terror attacks

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(Close): Travel shares pulled the FTSE lower as investors remained wary in the wake of the recent terror attacks.

Research from ForwardKeys suggested that flight bookings to Paris were down by more than a quarter last week following the attacks on 13 November.

Easyjet airline shares fell 3.16% as it said it had cancelled all flights between the Egyptian resort of Sharm el-Sheikh and the UK until 6 January.

At close of trade, the FTSE 100 was down 28.26 points at 6,277.23.

Other airline shares also fell, with British Airways owner IAG down 3.26%, while in Germany Lufthansa dropped 3.98%.

Fashion house Burberry was the biggest faller in the FTSE 100, down 5% after Nomura cut its rating on the stock to "neutral" from "buy".

Shares in DIY group Kingfisher fell 1.83% after the DIY group reported a fall in third-quarter profits following adverse currency movements.

The owner of the B&Q and Screwfix chains reported retail profits of £223m in the three months to the end of October, down 6.6% from a year earlier.

Trading was affected by a "softer" market in France, where Kingfisher owns the Castorama and Brico Depot chains.

Engineering support services firm Babcock International rose 2.96% after it reported a 7% rise in half-year pre-tax profits to £146.3m and said it was on track to meet its full-year targets.

On the currency markets, the pound lost ground after Bank of England governor Mark Carney said UK rates were set to remain low "for some time".

Sterling slipped 0.45% against the dollar to $1.5056, and dropped 0.56% against the euro to €1.4141.