After a positive start to the week, the FTSE 100 dipped into the red in early trade.
An hour into the session, the blue chip index is down just two points at 8,797.
While defence and aerospace companies including Babcock, Rolls-Royce and BAE Systems are all doing well, there are a few big losers.
Oil giants Shell and BP are both lower, which is hitting the London index, as oil prices dropped this morning, with Brent crude hitting $66 a barrel earlier.
WH Smith PLC (LSE:SMWH) shares have dropped over 7% after it agreed to knock down the price to sell its High Street business.
FirstGroup PLC is also lower. A report in the Financial Times highlighted that the Department for Transport has written to the Office of Rail and Road (ORR) asking it to place pressure on the independent regulator to limit how many of the applications are approved for new Open Access rail services.
