The exporter-heavy FTSE 100 fell 0.3% by 0719 GMT, lagging its European peers, as the pound gained after Rishi Sunak looked set to become Britain's next prime minister.

The pound strengthened 0.3% against the dollar, weakening shares of international companies. [GBP/]

Also weighing on the index, energy stocks fell 1.8% as crude prices slid after trade data from China showed that demand in the world's largest crude importer remained lacklustre in September. [O/R]

The domestically oriented FTSE 250 added 0.5%, with online fashion retailer Asos Plc jumping 4.5% after UK businessman Mike Ashley said he has built a stake of more than 5% in the firm, as per a Telegraph report on Saturday.

(Reporting by Johann M Cherian in Bengaluru; Editing by Sherry Jacob-Phillips)