Financial stocks dragged the FTSE 100 0.5% lower with HSBC (HSBA), Royal Bank of Scotland (RBS) and Barclays (BARC) the biggest fallers.
West Texas Intermediate and Brent crude oil slid 1% lower to $52.55 and $55 per barrel, respectively.
Gold advanced 0.8% to $1,213 per ounce and copper was flat at $5,776 per tonne.
In the US, both the Dow Jones and S&P 500 closed in the black as Trump’s inauguration failed to spook investors.
In Asia, Shanghai’s SSE Composite and Hong Kong’s Hang Seng index were up, but Japan’s Nikkei 225 closed 1.3% down at 18,891 due to weakness in pharma and finance stocks.
FTSE 100 RISERS AND FALLERS
Paddy Power Betfair (PPB) shrugged off adverse sports results in late 2016 as full year earnings will come in at the mid-point of its previously guided £390m to £405m EBITDA range. It lost nearly £5m as punters cleaned up with the US election result and unfavourable football scores.
Stockbroker Davy said it is confident that earnings forecasts for 2017 will have to be revised upwards as the year progresses as it believes prospects are good in Europe and Australia.
FTSE 250 RISERS AND FALLERS
Silver producer Hochschild Mining (HOC) announced its Pallancata mine in Peru will restart on Wednesday after resolving an issue with the local community. Metals production stopped in December after a road blockade by locals who wanted to renegotiate land access agreements.
Troubles in its healthcare arm forced filters manufacturer Essentra (ESNT) to warn operating profit will either hit or fall slightly short of the bottom end of its previously downgraded £137m to £142m guidance for 2016. The company issued two profit warnings last year.
Higher production helped to offset a flat diamond price and delay in starting a new processing plant at miner Petra Diamonds (PDL).
SMALL CAP RISERS AND FALLERS
Investors raised a glass to bio-control products provider Eden Research (EDEN) after it received authorisation in France for its 3AEY product for use in the prevention and treatment of grape rot in wine grapes. Shares in the firm catapulted 33.3% to 13.5p.
Construction outlet Lamprell (LAM) slipped 9.4% lower as revenue in 2017 was expected to be at the lower end of its guidance of $400m to $500m.
Edenville Energy (EDL) announced a strategic partnership with Sinohydro Corporation of China for its Rukwa coal to power project, sparking a 41.3% gain in its share price.
A profit warning and dividend cut pushed Braemar Shipping (BMS) 14.7% lower to 250p. Weakness in the oil and gas sectors worsened and the company struggled with a minor issue with market activity in its logistics arm.
Tech firm Revolymer (REVO) sealed an exclusive global supply and joint market deal with midcap chemicals group Croda (CRDA) for its Zinador product, which removes smells from a wide range of items.
High costs from acquisitions and gross margin pressure forced analysts to reduce their 2016 pre-tax profit expectations for Flowtech Fluidpower (FLO) by approximately 8%. Shares in the hydraulics specialist fell by 6%.
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