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* FTSE 100 down 0.5%, FTSE 250 down 0.4%
* Middle East tensions simmer
* Airlines fall, oil stocks gain on surging crude prices
Jan 6 (Reuters) - London's main index began the first full
trading week of the new decade in the red, as escalating
tensions in the Middle East sapped demand for risky assets.
The FTSE 100 .FTSE dropped 0.5% in early deals after U.S.
President Donald Trump threatened sanctions on Iraq and
retaliation on Iran if they responded with force to a U.S. air
strike last week. The FTSE 250 .FTMC shed 0.4%. Shares of airlines fell as higher oil prices raised worries
of a hit to their margins, with British Airways owner IAG
ICAG.L and easyJet EZJ.L shedding about 2.5% each. However,
oil majors Shell RDSa.L and BP BP.L outperformed.
Morrisons MRW.L and Sainsbury's SBRY.L fell 3% and 1.5%,
respectively. A Times report said British supermarkets will
report https://www.thetimes.co.uk/edition/business/christmas-fails-to-light-up-supermarkets-vjsrhkjwt
"underwhelming" Christmas sales, while major competitor Aldi UK
ALDIEI.UL separately reported higher sales.