London stocks ended Monday in the red, with the FTSE 100 down 0.4% at 8,760.96 and the FTSE 250 also off 0.4%, despite fresh all-time highs for the S&P 500 in New York. The AIM All-Share eked out a modest 0.2% gain.
The US remains centre stage this week with a raft of key data releases and a looming fiscal bill deadline on Friday. Analysts warn that the approaching end of the July 9 tariff pause could fuel heightened volatility across global markets.
Back home, the UK economy delivered Q1 GDP growth in line with expectations, 0.7% quarter-on-quarter and 1.3% year-on-year, signalling steady, if unspectacular, momentum. Mortgage approvals surprised on the upside in May, rising nearly 4%, suggesting a housing market that is holding up better than feared.
Yet, despite this, housebuilders were notable laggards. Persimmon, Barratt Developments and Taylor Wimpey all fell between 3% and 4%, weighed down by broader concerns over consumer demand and market conditions.
Babcock International climbed 1.1% after upgrades from Bank of America, Citi and Jefferies. The firm recently raised guidance, increased dividends and announced plans for its first share buyback, signalling confidence in its medium-term outlook amid rising defence spending.
Centrica drifted 1.6% lower following JPMorgan’s downgrade to neutral. Meanwhile, WH Smith shed 3% after confirming the completion of its high street business sale to Modella Capital, but at a reduced price of up to £40 million versus the previously expected £52 million. The retailer cited a softer trading backdrop and cautious sentiment among stakeholders under new ownership.
Overall, London markets felt the weight of domestic concerns and profit-taking, even as Wall Street pushed on with fresh records.