Published by Global Banking & Finance Review®
Posted on October 20, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleLondon stocks rose as FTSE 100 gained 0.6%, driven by defence and mining sectors, while homebuilder shares fell due to stagnant housing prices.
(Reuters) -UK's blue-chip FTSE 100 index rose on Monday, led by gains in defence and mining stocks as easing trade tensions lifted risk appetite, while homebuilder shares slid following a survey indicating stagnant housing prices.
The blue-chip FTSE 100 gained 0.6% to 9,412.71 points, having dropped 0.9% the previous session. The mid-cap focused FTSE 250 rose 0.4%.
Global risk appetite was buoyed by easing investor concerns over the stability of regional banks, turning focus to a wave of corporate earnings and a closely watched inflation report this week.
The index of aerospace and defence stocks advanced 2%, tracking European peers. Babcock and Rolls-Royce rose 2.3% and 2.6%, respectively, and were among the top performers in the FTSE 100.
The index of precious metal miners rose 1.5%, as gold prices edged higher. [GOL]/
The banks index gained 0.7%, recovering after concerns about credit quality in U.S. regional banks caused a global selloff in the financial sector.
However, the homebuilders index lost 1.2%, with Persimmon down 1.5%, leading losses on FTSE 100. A survey by property website Rightmove showed the asking prices for British homes rose only 0.3% in the four weeks ending October 11, which is below the seasonal average.
House prices in Britain typically pick up in the autumn before a Christmas lull.
The retailers index ended down nearly 1.5%after B&M slumped nearly 22%, its worst one-day decline on record, after the discount retailer cut its full-year forecast over an accounting error, and announced the resignation of CFO Mike Schmidt.
Among individual stocks, Secure Trust Bank slipped 2.3% after the company said it would need to raise its provision by about 16 million pounds ($21.5 million) to a total of 21 million pounds for compensating customers of the motor financing mis-selling scandal.
(Reporting by Medha Singh and Avinash P in Bengaluru; Editing by Vijay Kishore and Ros Russell)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, based on market capitalization.
Mining stocks are shares of companies involved in the extraction of minerals and resources from the earth, including metals like gold, silver, and copper.
Risk appetite refers to the amount of risk that an investor is willing to take when making investment decisions, often influenced by market conditions and personal financial goals.
Homebuilder shares are stocks of companies that construct residential properties, and their performance can be affected by housing market trends and economic conditions.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power and often measured by the Consumer Price Index (CPI).
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