Stock markets around the world fell as the assassination of Pakistani opposition leader Benazir Bhutto sparked fears of civil unrest in the nuclear-armed country and instability in the region.
European shares were down today after Asian and US stocks tumbled overnight. The FTSE 100 closed down 20.9 points at 6476.9 in its last full trading session before the end of the year, ending a six-day winning run.
Europe's losses came after Japan's benchmark Nikkei index dropped 1.7% on its last trading day of 2007. It was down 11% for the year at 15,307.78, its first annual loss in five years and putting it on track to be the world's worst-performing major stock market this year. The Nikkei is now closed until next Friday.
Shares in Australia, South Korea, Hong Kong and New Zealand also fell overnight, with benchmark indices down between 0.3% and 1.7%. In the US, the Dow Jones industrial average up just 2.35 points at 13361.96 at 5pm GMT, after falling 1.4%, or 192.08 points, on Thursday.
Bhutto's assassination in a gun and bomb attack as she left a political rally in Rawalpindi yesterday have cast doubts on elections scheduled for January 8, although Pakistan's caretaker prime minister said today they would go ahead as planned.
Gold traded close to a one-month high this morning, as some investors moved out of stocks and into safer assets.
The spot price of gold climbed as high as $829.30 per ounce in early trading after hitting a fresh one-month high of $831.10 yesterday. Gold was also supported by strong energy prices, with US crude oil trading near $97 a barrel after hitting a one-month high of $97.79 yesterday.
"Pakistan is a crucial country in the region and the prospect of political uncertainty is leading to some nervousness [reflected in] gold, bond and oil prices rising," said Audrey Childe-Freeman, an economist at CIBC World Markets.
Trading on the Karachi Stock Exchange has been suspended for three days for a period of mourning.