London stocks dip as mining, financial shares weigh
Market Performance and Key Movers
June 29 (Reuters) - UK shares inched lower on Monday, led by declines in miners and financials, as renewed Middle East hostilities weighed on risk sentiment.
The blue-chip FTSE 100 index closed 0.2% lower, while the midcap FTSE 250 was off 0.6%.
Sector Highlights
Mining and Commodities
• Mining shares slipped due to a decline in gold after the recent escalation in the Middle East fuelled inflation concerns, with Anglo American, Fresnillo and Rio Tinto down between 1.2% and 3%.
Consumer Staples
• British American Tobacco dipped 0.7% after the tobacco giant said it plans to reduce its workforce by 20%, dragging on consumer staple shares.
Home Construction
• Shares of home construction makers mirrored European peers, with the index down 2.4%.
Notable Stock Movements
Industrial and Defence
• Among other movers, Melrose Industries <MRON.L> and Babcock fell 1.3% and 5.1%, respectively. The Ministry of Defence said on Sunday that the UK will scrap plans to replace its ageing destroyers to focus on drone warships.
Private Equity and M&A
• Bridgepoint jumped 16.1% after the private equity group agreed to buy U.S.-based Kayne Anderson's real estate business in a deal valued at about $1.4 billion.
Telecommunications
• BT and Verizon announced a deal to combine their international enterprise operations into a 50:50 joint venture. Shares of the British telecoms group were marginally up.
Political and Economic Context
Political Developments
• Stocks showed little reaction to a policy speech by Andy Burnham, who is widely expected to be Britain's next prime minister. He reiterated his commitment to existing fiscal rules, saying his plans for the country were consistent with the party's 2024 manifesto.
Economic Outlook
Business Sentiment
• On the economic front, a survey showed British companies' expectations for growth in the coming quarter fell this month to their lowest level this year.
(Reporting by Twesha Dikshit; Editing by Shailesh Kuber and Susan Fenton)
