London’s stock market ended lower on Monday, with the FTSE 100 recording its sixth consecutive day of declines as weakness in consumer-related sectors weighed on the index.
The blue-chip FTSE 100 dropped 0.3% to close at 10,720.30 points, its lowest level in more than three weeks. The mid-cap FTSE 250 also declined, falling 0.7% to 24,704.40 points, marking its biggest daily percentage loss in over three weeks.
Geopolitical tensions and oil prices pressure markets
Investor sentiment remained cautious as tensions in the Middle East continued to influence global markets. U.S. President Donald Trump said Iran should surrender to end the conflict with the United States, after a senior Iranian official warned that Tehran could escalate tensions around the Strait of Hormuz if diplomatic efforts fail.
Oil prices moved higher as uncertainty surrounding the conflict continued. Brent crude gained 0.5% to reach $89.02 per barrel.
Analysts warned that a prolonged lack of progress could push oil prices higher, with Dan Coatsworth, head of markets at AJ Bell, noting that continued uncertainty could see Brent approach the $100 per barrel level again, potentially delaying further improvements in inflation.
Investors await UK economic data
Markets are now focused on upcoming UK economic indicators, including labour market data due Tuesday and inflation figures expected Wednesday. The reports could provide further clues on the future direction of the Bank of England’s monetary policy.
A survey from the Chartered Institute of Personnel and Development showed that British employers remain cautious about hiring, while business confidence remains close to its weakest levels outside the COVID-19 pandemic period.
Meanwhile, credit rating agency Fitch maintained the UK’s sovereign credit rating at AA- with a stable outlook.
Consumer sectors lead FTSE declines
Consumer-focused industries were among the biggest losers during Monday’s session. The FTSE 350 personal goods, beverages, and personal care, drug and grocery store sectors fell between 1.9% and 2.7%, making them the worst-performing areas of the market.
Despite the broader weakness, mining companies helped limit losses in the FTSE 100 as gold prices strengthened and copper reached a more than six-month high.
- Fresnillo gained 1.6%.
- Anglo American increased 2%.
- Rio Tinto and Glencore advanced between 0.9% and 1%.
Corporate updates: AstraZeneca and Rolls-Royce rise
AstraZeneca shares rose 0.9% after the pharmaceutical company announced that its Tagrisso-Orpathys combination and Daiichi Sankyo-partnered Enhertu treatments achieved key trial goals.
Rolls-Royce climbed 1.5% after analysts at Morgan Stanley and Citigroup increased their price targets for the aerospace company.
Despite support from miners and selected corporate gains, uncertainty over geopolitics, inflation and interest rates continued to weigh on London’s leading indices.
