FTSE 100 subdued as mining, defence shares drop

The UK’s blue-chip FTSE 100 closed flat, while the domestically focussed midcap FTSE 250 index edged up 0.4 per cent in quiet trading after a long weekend

London’s FTSE 100 closed little changed on Monday, pressured by declines in precious metal miners and defence shares in the year’s final trading week.

The UK’s blue-chip FTSE 100 closed flat, while the domestically focussed midcap FTSE 250 index edged up 0.4 per cent in quiet trading after a long weekend.

Talks between U.S. President Donald Trump and his Ukrainian counterpart Volodymyr Zelensky were in focus, with Trump saying they were “a lot closer” to a deal to end Russia-Ukraine war, prompting a selloff in defence stocks in the UK and Europe.

Babcock International declined 3.4 per cent, while BAE Systems and Rolls-Royce shed 0.8 per cent and 1.1 per cent, respectively. The FTSE index of aerospace and defence slid 1.1 per cent.

Precious metal miner Endeavour Mining tumbled 4 per cent, as gold and silver prices pulled back sharply from recent highs.

Industrial metal miners slipped 0.3 per cent after copper prices retreated following setting a record just short of $13,000 a metric ton.

Volumes were expected to remain subdued in another holiday-shortened week, with UK markets set to close early on Wednesday and stay shut on Thursday for the New Year break.

British lender International gained nearly 6 per cent after it agreed to a £543-million ($732.5 million) takeover by a company associated with BasePoint Capital.

The FTSE 100 has soared almost 21 per cent so far this year, supported by a rally in defence stocks amid geopolitical tensions and gains in miners and banks. The index is on track for a fifth straight yearly rise, outperforming the pan-European STOXX 600’s 16 per cent gain.