(Reuters) – London stocks kick-started the week on a lacklustre tone, weighed down by aerospace and defence shares, although investor optimism over a potential September rate cut in the United States limited losses.
The blue-chip FTSE 100 index was down 0.2% on Monday, after logging its best week since May in the previous session. The mid-cap FTSE 250 was flat, as of 0710 GMT.
Aerospace and defence stocks inched 1.3% lower, tracking losses in European defence stocks following reports the German federal government would reject new military aid requests for Ukraine due to spending cuts.
Shares of Bae Systems fell 2% while Rolls-Royce and Chemring were down more than 1% each.
Heavyweight energy shares inched down 0.2% on lower crude prices, while banks dipped 0.1%.
On the flip side, precious and industrial metal miners inched 0.7% higher each, as gold prices traded near historic levels while copper gained on waning fears of U.S. recession and Chinese demand concerns. [GOL/] [MET/L]
Real estate and real estate investment trusts were marginally higher after property website Rightmove said British estate agents reported higher buyer interest since the Bank of England’s interest rate cut.
Investors remained optimistic over a potential U.S. rate cut as data last week reflected slowing inflation and allayed slowdown fears, uplifting sentiment after a global stocks sell-off earlier this month.
All eyes will be on commentary from U.S. Federal Reserve Chair Jerome Powell scheduled to speak at the Jackson Hole event later this week.
A monthly reading of the purchasing managers index is due in the UK and the United States later this week, alongside minutes of the Fed’s last policy meeting in an otherwise data-light week.
Among individual stocks, Plus500 gained 4.1% to top the FTSE 250 index after the online trading platform forecast its annual results to be above market view and also recorded a 13% jump in new customers in the first half of the year.
(Reporting by Purvi Agarwal in Bengaluru; Editing by Sherry Jacob-Phillips)
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