UK stocks drop, dragged down by losses in industrials

The blue-chip FTSE 100 ended down 0.2 per cent, while the domestically focused FTSE 250 shed 0.7 per cent, logging its biggest one-day decline in two weeks

UK stocks dropped on Monday, dragged down by losses in industrials stocks, amid a general risk-off global sentiment across markets, with investors monitoring domestic data sets.

The blue-chip FTSE 100 ended down 0.2 per cent. The domestically focused FTSE 250 shed 0.7 per cent, logging its biggest one-day decline in two weeks.

Aerospace and defence stocks led sectoral losses, down 2.8 per cent. Melrose, which announced a new CFO, dropped 4.6 per cent, while Rolls-Royce and BAE Systems shed 2.9 per cent and 2.5 per cent, respectively.

Homebuilders declined 1.3 per cent, with Barratt Redrow down 1.5 per cent and Bellway down 1.8 per cent.

Surveys showed weak manufacturing in the biggest economies globally in November, impacted by weaker demand and tariff uncertainties.

On the flip side, precious metal mining stocks gained 4.9 per cent, tracking gold prices that advanced to a six-week high. Fresnillo gained 7.1 per cent to hit a record high, while Hochschild Mining jumped 3.7 per cent.

Industrial miners added 1.1 per cent with Anglo American and Antofagasta adding 1.4 per cent and 2.2 per cent, respectively.

Meanwhile, domestic data showed that Britain’s services sector declined at the fastest pace in three years in the three months to November, while a Bank of England policymaker said more signs of weakening labour market is required for a rate cut in December.

Separately, the manufacturing PMI rose for the first time last month since September 2024, a survey showed.

Among other stocks, Reckitt gained 2.4 per cent after a Barclays upgrade. HICL Infrastructure and The Renewables Infrastructure Group said they had abandoned plans for a proposed merger. Shares in TRIG dropped 4.2 per cent, while HICL added 3.4 per cent.