FTSE falls as defence and mining losses hit UK markets
The FTSE fell as defence and mining shares weighed on UK markets, with BAE Systems and Babcock down and miners pressured by lower gold. Mortgage approvals and private credit slowed.
UK stocks opened lower on Monday as weakness in defence and mining shares pushed the FTSE 100 and FTSE 250 down, extending losses from the previous week.
British American Tobacco slipped 1.6% after announcing plans to reduce its workforce by about 20%, weighing on consumer staples. Aerospace and defence firms fell after the Ministry of Defence announced changes to naval plans, saying it will not replace ageing destroyers and will focus resources on developing drone warships. BAE Systems declined about 1.4% and Babcock dropped roughly 7%.
Miners traded lower after gold prices eased during the session. Energy and financial stocks posted gains that partly offset the broader decline. Telecommunications group BT was marginally higher after announcing a strategic partnership with Verizon to combine their international enterprise operations into a 50:50 joint venture.
Data from the Bank of England showed lenders approved 56,205 mortgages for house purchases in May, the lowest monthly total since December 2023 and down from 66,034 in April. The central bank’s monthly figures also pointed to slower business borrowing and weaker private‑sector credit growth in May.
Market participants awaited a planned speech by Labour lawmaker Andy Burnham for guidance on fiscal policy and monitored business confidence indicators. Trading remained subdued through the session.
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