The FTSE 100 surrendered an early advance on Monday as weakness in healthcare and mining stocks outweighed gains elsewhere, leaving stocks in negative territory despite encouraging signals from the US economy.
The blue-chip index closed 0.3% lower at 10,651.77, while the FTSE 250 slipped 0.2% to 23,504.22. Across Europe, France’s CAC 40 fell 0.3% whereas Germany’s DAX 40 edged 0.2% higher. Wall Street started the week on a mixed footing following Friday’s Independence Day holiday, with the Nasdaq climbing 1.2%, the S&P 500 adding 0.7% and the Dow Jones easing 0.1%.
AstraZeneca proved one of the biggest drags on the FTSE 100 after falling 2.5%, with fellow pharmaceutical group GSK also under pressure, down 1.6%. Precious metal producers added to the index’s losses as weaker gold prices pushed Fresnillo down 2.4% and Endeavour Mining 2.5% lower.
easyJet was the standout performer on the FTSE 250 after soaring 9.3% when the airline revealed it had reached an agreement in principle over a possible takeover by US private equity firm Castlelake. The latest proposal values the company at more than £5 billion, with Castlelake offering 690p per share in what is now its fifth approach.
ITV ended little changed after announcing the sale of its Media & Entertainment business to Sky in a transaction worth up to £1.6 billion. The broadcaster will receive £1.2 billion in cash, Sky’s Love Productions business valued at £200 million and a potential further £200 million linked to advertising performance in 2027, payable the following year. ITV also said it intends to return £950 million to shareholders from the proceeds.
Meanwhile, investors continued to assess the latest US economic figures, which painted a picture of steady growth rather than a sharp slowdown. The S&P Global US Services PMI improved to 51.2 in June from 50.7 in May as new business expanded at its fastest pace since February, although the reading narrowly missed forecasts.
The Institute for Supply Management’s services index remained firmly in expansion territory at 54.0, marking a 24th consecutive month above the key 50 level. The figures pointed to resilient demand, improving hiring and easing, though still elevated, cost pressures, reinforcing expectations that the US Federal Reserve is unlikely to feel under immediate pressure to cut interest rates.