Finance
FTSE 100 gains on healthcare, defence rally; focus on Ukraine peace talks
Published by Global Banking & Finance Review®
Posted on August 18, 2025
2 min readLast updated: January 22, 2026
Quick Summary
FTSE 100 rose 0.2% on healthcare and defence gains amid Ukraine talks. Investors await UK inflation report and Jackson Hole symposium for economic insights.
FTSE 100 Rises on Healthcare and Defence Gains Amid Ukraine Talks
(Reuters) -Britain's FTSE 100 closed higher on Monday, propelled by gains in healthcare and defence stocks, while investors kept a watch on U.S.-brokered peace talks aimed at ending the Russia-Ukraine war.
The blue-chip FTSE 100 finished 0.2% up after dipping earlier in the session. However, the benchmark was still well below Friday's intraday record high.
The midcap FTSE 250 ended little changed.
Geopolitics dominated market sentiment as investors awaited U.S. President Donald Trump's meeting with Ukrainian President Volodymyr Zelenskiy and European leaders, due later in the day.
Trump is pressing for a quick end to the Russia-Ukraine war, with Kyiv and its allies fearing pressure to accept terms favoring Moscow after his Friday's summit with Russian counterpart Vladimir Putin.
Energy sector, which closed 0.5% lower, remained in focus, with oil markets being sensitive to Washington's signals on secondary sanctions on Russian oil. [O/R]
Heavy-weight healthcare shares primarily drove Monday's advances, rising 1.2%.
Aerospace and defence sector began the week on a strong footing, advancing 1.2%, with Babcock International Group jumping 5.3% after brokerage firm RBC Capital Markets initiated coverage at "outperform" rating.
Meanwhile, industrial metal mining companies weakened 2.2%, as a stronger U.S. dollar weighed on metal prices.
A gauge of Britain's homebuilders closed near 1% lower after a survey showed that asking prices for newly advertised British properties fell in the four weeks to mid-August, though less notably than in previous months. July sales reached their highest level for that time of year since 2020.
Looking ahead, investors await Wednesday's crucial UK inflation report, which could provide greater clarity on the country's economic health.
Additionally, global markets will focus on Thursday's Jackson Hole symposium, where U.S. Federal Reserve Chair Jerome Powell may offer insights into future interest rate directions for the world's largest economy.
Among single stocks, bootmaker Dr Martens gained 8.5% after brokerage firm Peel Hunt upgraded the stock to "buy" from "add".
(Reporting by Ragini Mathur in Bengaluru; Editing by Sahal Muhammed and Vijay Kishore)
Key Takeaways
- •FTSE 100 closed 0.2% higher, led by healthcare and defence stocks.
- •Investors focused on U.S.-brokered Ukraine peace talks.
- •Energy sector fell 0.5% amid oil market concerns.
- •UK inflation report and Jackson Hole symposium are key upcoming events.
- •Dr Martens stock surged 8.5% after an upgrade.
Frequently Asked Questions about FTSE 100 gains on healthcare, defence rally; focus on Ukraine peace talks
1What drove the FTSE 100's gains on Monday?
The FTSE 100 closed higher due to advances in healthcare and defence stocks, rising 1.2% in both sectors.
2What geopolitical events are influencing the market?
Investors are focused on U.S.-brokered peace talks between Ukraine and Russia, particularly President Trump's meeting with Ukrainian President Zelenskiy.
3How did the energy sector perform?
The energy sector closed 0.5% lower, as oil markets reacted to Washington's signals regarding secondary sanctions on Russian oil.
4What economic report are investors awaiting?
Investors are looking forward to Wednesday's UK inflation report, which is expected to provide insight into the country's economic health.
5Which stock saw a significant increase on Monday?
Bootmaker Dr Martens gained 8.5% after brokerage firm Peel Hunt upgraded the stock to 'buy' from 'add'.
