Finance
FTSE 100 subdued as defence, mining shares slide in thin holiday trading
Published by Global Banking & Finance Review®
Posted on December 29, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 29, 2025
2 min readLast updated: January 20, 2026
FTSE 100 remained flat due to declines in defence and mining shares amid thin holiday trading. Key stock movements included Babcock's drop and IPF's rise.
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)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, based on market capitalization.
Precious metal miners are companies that extract valuable metals such as gold, silver, and platinum from the earth, often facing fluctuating market prices.
Corporate governance refers to the systems, principles, and processes by which companies are directed and controlled, ensuring accountability and transparency.
Economic growth is the increase in the production of goods and services in an economy over time, typically measured by GDP.
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