London stocks clock monthly gains; focus shifts to BoE rate decision

(Reuters) -UK's benchmark FTSE 100 ended flat on Friday amid low trading volumes, as gains in mining shares countered weakness in defence stocks, while the stock index logged its first monthly gain in three.

The FTSE 100 was largely unchanged at 8,287.3 points, while the domestically focused midcap FTSE 250 also held its ground at 20,771.57. Trading volumes were lighter than usual, with the U.S. equity market open for half a day following Thursday's Thanksgiving holiday.

Both indexes registered their biggest monthly gains since July, with automobiles and personal goods emerging as the top sectoral performers in November.

This month, global financial markets were rattled by fears of trade tariffs proposed by U.S. President-elect Donald Trump and heightened geopolitical tensions that drove investors to safe-haven assets.

Meanwhile, the Bank of England warned higher trade barriers could affect global growth and feed inflation uncertainties, potentially causing financial market volatility.

All eyes are on major central bank policy decisions next month, especially the BOE-e27aa96a-1849-4bf0-93aa-486e3a9568bc>BoE that is widely expected to hold rates. The Federal Reserve and European Central Bank are expected to lower their policy rates.

Among top moving stocks, Anglo American rose 5.4% following a Jefferies rating upgrade to "buy" from "hold", boosting industrial metal miners.

The aerospace and defence sector fell 0.9%, as shares of BAE Systems and Qinetiq dropped 4.9% and 3.5%, respectively, after BofA Global Research downgraded the defence stocks.

Among others, London-listed Georgian banks TBC Bank and Bank of Georgia dropped 5.9% and 6.2%, respectively, as the Georgian government is set to suspend talks on European Union accession and refuse budgetary grants until 2028.

Spire Healthcare climbed 2.7% following a media report that India's Narayana Health is in advanced talks to acquire a controlling stake in the company.

Direct Line rose 4.6%, adding to Thursday's surge, after a report said Aviva contacted the insurer's investors, possibly paving the way for a hostile takeover.

(Reporting by Ankika Biswas in Bengaluru; Editing by Tasim Zahid and Rod Nickel)