Finance
London's FTSE 100 rises as defensive plays outweigh slide in commodity-linked shares
Published by Global Banking and Finance Review
Posted on February 2, 2026
2 min readLast updated: February 2, 2026
Home > Finance > London's FTSE 100 rises as defensive plays outweigh slide in commodity-linked shares
Quick Summary
FTSE 100 rose as defensive stocks gained, offsetting declines in commodity shares amid geopolitical tensions and economic caution.
FTSE 100 Gains as Defensive Stocks Offset Commodity Declines
Market Overview and Key Movements
Feb 2 (Reuters) - The UK's FTSE 100 edged higher on Monday, as investors piled into defensive pharma and consumer staples stocks amid a global selloff in energy and metal shares.
Defensive Stocks Performance
The blue-chip FTSE 100 index was up 0.2% at 1037 GMT, rising for the third straight session, while the domestically focused mid-cap index FTSE 250 was down 0.3% at a more-than-one-week low.
Impact of Geopolitical Events
The index of precious metal miners fell 4.9%, hitting a three-week low, with Endeavour Mining and Fresnillo among the top losers in the benchmark index, down nearly 5% each.
Bank of England's Upcoming Meeting
Other London-listed miners also fell, with giants Glencore and Rio Tinto down 2.4% and 1.1%, respectively, as the selloff spread to silver and industrial metals as well.
The rout began after U.S. President Donald Trump's nomination of Kevin Warsh as the next U.S. Federal Reserve chair on Friday set off a wave of unwinding of leveraged bets.
Caution in markets pushed investors into defensive plays that typically outperform during economic downturns. Healthcare gained 1.3%, lifted by AstraZeneca's 1.4% rise, while the personal care index also advanced as Unilever climbed 2.2%, making both companies among the benchmark’s top boosts.
Signs of geopolitical tensions easing between the U.S. and Iran also sparked a selloff in crude prices, sending energy stocks down 1.6%. Shell and BP fell 1.5% and 1.7%, respectively.
Focus this week will be on the Bank of England's policy meeting on Thursday where the central bank is likely to hold rates at 3.75% and is expected to offer little clarity on when further cuts might come as it waits for firmer inflation trends.
The latest survey showed British businesses are most likely to be planning to raise pay this year by between 3% and 3.49%, slightly more than some BoE policymakers are comfortable with as they seek to return inflation to target.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Maju Samuel)
Key Takeaways
- •FTSE 100 rose 0.2% as defensive stocks gained.
- •Commodity-linked shares saw a decline due to geopolitical tensions.
- •AstraZeneca and Unilever were top performers.
- •Bank of England's meeting is a key focus this week.
- •Geopolitical tensions affect crude and energy stocks.
Frequently Asked Questions about London's FTSE 100 rises as defensive plays outweigh slide in commodity-linked shares
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, reflecting the performance of the UK stock market.
2What are defensive stocks?
Defensive stocks are shares in companies that provide consistent dividends and stable earnings regardless of the overall market conditions, often found in sectors like utilities and consumer goods.
3What is the Bank of England?
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, maintaining monetary stability, and overseeing the financial system.
4What are commodity prices?
Commodity prices refer to the market prices for raw materials like oil, gold, and agricultural products, which fluctuate based on supply and demand dynamics.
5What is economic growth?
Economic growth is an increase in the production of goods and services in an economy over a period, often measured by the rise in Gross Domestic Product (GDP).
