Finance
UK stocks fall, dragged down by industrials; Powell speech in focus
Published by Global Banking & Finance Review®
Posted on December 1, 2025
2 min readLast updated: January 20, 2026
Quick Summary
UK stocks dropped with industrials leading losses. Investors await Powell's speech for interest rate guidance. Precious metals gained as gold prices rose.
UK Stocks Decline, Industrials Weaken; Powell's Speech Awaited
Dec 1, 2025 - UK stocks dipped on Monday, dragged down by losses in industrials stocks, amid a general risk-off global sentiment across markets, with investors monitoring domestic data sets and the U.S. Federal Reserve monetary path.
The blue-chip FTSE 100 ended down 0.2%. The domestically focused FTSE 250 lost 0.7%, logging its biggest one-day drop in two weeks.
Aerospace and defence stocks led sectoral losses, down 2.8%. Melrose, which announced a new CFO, fell 4.6%, while Rolls-Royce and BAE Systems lost 2.9% and 2.5%, respectively.
U.S. and Ukrainian officials held talks on Sunday regarding a peace deal with Russia, with Secretary of State Marco Rubio optimistic about progress toward ending the more than three-year war.
Homebuilders fell 1.3%, with Barratt Redrow down 1.5% and Bellway down 1.8%.
Surveys showed weak manufacturing in the biggest economies globally in November, impacted by weaker demand and tariff uncertainties.
On the flip side, precious metal mining stocks added 4.9%, tracking gold prices that rose to a six-week high. Fresnillo rose 7.1% to hit a record high, while Hochschild Mining climbed 3.7%.
Industrial miners gained 1.1% with Anglo American and Antofagasta rising 1.4% and 2.2%, respectively.
Meanwhile, domestic data showed that Britain's services sector declined at the fastest pace in three years in the three months to November, while a Bank of England policymaker said more signs of weakening labour market is required for a rate cut in December.
Separately, the manufacturing PMI increased for the first time last month since September 2024, a survey showed.
Across the Atlantic, U.S. Fed Chair Jerome Powell's speech later in the day will be scrutinized for fresh clues on the interest rate path.
Among other stocks, Reckitt rose 2.4% after a Barclays upgrade. HICL Infrastructure and The Renewables Infrastructure Group said they had abandoned plans for a proposed merger. Shares in TRIG fell 4.2%, while HICL gained 3.4%.
Additionally, the U.S. and Britain announced a deal to secure zero tariffs on British pharmaceutical products and medical technology in return for Britain spending more on medicines and overhauling how it values drugs.
(Reporting by Utkarsh Tushar HathiEditing by Vijay Kishore and Frances Kerry)
Key Takeaways
- •UK stocks fell, led by industrials.
- •FTSE 100 and FTSE 250 both declined.
- •Precious metals rose with gold prices.
- •Investors focus on Powell's upcoming speech.
- •UK manufacturing PMI showed improvement.
Frequently Asked Questions about UK stocks fall, dragged down by industrials; Powell speech in focus
1What is the FTSE 100?
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, measured by market capitalization.
2What is a monetary policy?
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve economic objectives.
3What are industrial stocks?
Industrial stocks are shares of companies involved in the production and distribution of goods, including manufacturing, construction, and transportation.
4What is a CFO?
A CFO, or Chief Financial Officer, is a senior executive responsible for managing the financial actions of a company, including financial planning and risk management.
