Jan 26 (Reuters) - London shares began the week on a subdued note on Monday, with gains in metal miners offsetting losses in industrial stocks, as caution lingered in markets after recent geopolitical
London Markets End Steady as Mining Gains Offset Industrial Declines
Market Overview and Sector Performance
Jan 26 (Reuters) - London shares closed little changed on Monday as gains in mining and healthcare stocks offset weakness in industrial shares, with investors looking ahead to the U.S. Federal Reserve's policy decision later this week.
Impact of Mining and Healthcare Stocks
The blue-chip FTSE 100 index was almost flat, while the mid-cap index FTSE 250 rose 0.2%.
Weakness in Industrial Shares
Industrial shares weighed most heavily on London markets, falling 1.6%, while travel and leisure stocks dropped 1.2%.
Investor Sentiment and Economic Outlook
Budget carrier Wizz Air has sought U.S. approval to operate flights between the UK and the U.S., seeking to tap the lucrative transatlantic market. Its shares were down 1.4%.
The cautious tone reflects continued investor apprehension following last week's turmoil sparked by U.S. President Donald Trump's Greenland-linked tariff threats against Britain and other European nations.
While the threat has since been withdrawn, investors continue to weigh the long-term implications for global trade if tariffs become a standard bargaining tool.
On the bright side, precious metal miners hit record highs, gaining 5.4%, while industrial metal miners climbed 1.4%, buoyed by optimism over the broader commodities outlook and fresh peaks in precious metals prices.
Healthcare stocks also advanced 1.1%, with AstraZeneca and GSK rising more than 1% each.
Banking stocks traded 0.8% higher. HSBC and NatWest are set to follow their European rivals in lifting key profit targets when they report annual earnings in the coming weeks, according to people close to the matter.
On the economic front, Britain's economy has shown signs of recovery since finance minister Rachel Reeves' annual budget statement in November, following months of uncertainty for employers and households.
Investors were also focused on the Fed's policy decision later this week. While the U.S. central bank is expected to hold interest rates steady, concerns about its independence are likely to take centre stage.
Among other movers, private hospital group Spire Healthcare jumped 17.9% after announcing it is in early-stage talks with several buyout firms, including Bridgepoint and Triton Partners, to explore strategic options.
Bridgepoint shares were down 2.3%.
(Reporting by Ragini Mathur in Bengaluru; Editing by Tasim Zahid and Jan Harvey)
