UK midcaps dipped on Monday, pulled down by financial and industrial shares, amid a general risk-off global sentiment across markets, with investors monitoring domestic data sets and the U.S. Federal Reserve monetary path. The domestically focussed FTSE 250 (.FTMC), opens new tab was down 0.8%, and on track to have its biggest one-day drop in two weeks.
Aerospace and defence stocks (.FTNMX502010), opens new tab led sectoral losses, with aircraft manufacturer Rolls-Royce (RR.L), opens new tab and defence engineering firm BAE Systems (BAES.L), opens new tab falling 3% and 2.8%, respectively.
U.S. and Ukrainian officials held talks on Sunday regarding a peace deal with Russia, with Secretary of State Marco Rubio optimistic about progress toward ending the more than three-year war.
Homebuilders (.FTNMX402020), opens new tab fell 1.5%, with Balfour Beatty (BALF.L), opens new tab, Bellway (BWY.L), opens new tab, and Taylor Wimpey (TW.L), opens new tab dropping over 1.5%.
Keeping losses in check, precious metal mining stocks (.FTNMX551030), opens new tab added 3.6%, tracking metal prices. Hochschild Mining (HOCM.L), opens new tab and Fresnillo (FRES.L), opens new tab rose more than 5% each.
Domestic data showed that Britain's services sector declined at the fastest pace in three years in the three months to November.
Separately, the manufacturing PMI increased for the first time last month since September 2024, a survey showed. Across the Atlantic, Fed Chair Jerome Powell's speech later today will be scrutinized by investors for hints on the monetary policy path ahead of next week's central bank meeting.
Among other stocks, Melrose (MRON.L), opens new tab fell 5.9%. The GKN Aerospace owner named Ross McCluskey as the new CFO, effective in 2026. HICL (HICL.L), opens new tab rose 4.4% after the investment firm said it had abandoned plans for a proposed merger with The Renewables Infrastructure Group (TRIG.L), opens new tab, which fell 3.6%. The merger would have formed the UK's largest listed infrastructure investment company, with net assets exceeding 5.3 billion pounds ($7.01 billion).
