Dec 29 (Reuters) - London’s FTSE 100 edged lower on Monday, as prospects of a potential Russia-Ukraine ceasefire weighed on defence stocks in the final trading week of the year. U.S. President Donald
FTSE 100 Stays Flat as Defence, Mining Shares Decline
Dec 29 (Reuters) - London's FTSE 100 finished 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 ended flat, while the domestically focussed midcap FTSE 250 index edged up 0.4% in quiet trading after a long weekend.
Talks between U.S. President Donald Trump and his Ukrainian counterpart Volodymyr Zelenskiy were in focus, with Trump saying they were "a lot closer" to a deal to end Russia's war, prompting a selloff in defence stocks in the UK and Europe. [.EU]
However, hopes faded after Moscow claimed Ukraine tried to attack President Vladimir Putin's residence, posing a roadblock to negotiations.
Babcock International dropped 3.4%, while BAE Systems and Rolls-Royce fell 0.8% and 1.1%, respectively. The FTSE index of aerospace and defence slipped 1.1%.
Precious metal miner Endeavour Mining dropped 4%, as gold and silver pries retreated sharply from recent highs. [GOL/]
Industrial metal miners dropped 0.3% after copper prices pulled back following setting a record just shy 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 Personal Finance rose nearly 6% after it agreed to a 543-million-pound ($732.5 million) takeover by a company associated with BasePoint Capital.
The FTSE 100 has surged nearly 21% 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% gain and Wall Street benchmark S&P 500's 17% increase in 2025.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Mrigank Dhaniwala and Shilpi Majumdar)
