London stocks finish flat as gains in mining shares balance losses in industrial stocks — that was the story on Monday as UK markets struggled to find clear direction ahead of a crucial week for global investors.
Shares in London closed largely unchanged, with strength in mining and healthcare counters helping to counter losses across industrial sectors. Market participants remained cautious, keeping a close eye on the U.S. Federal Reserve’s upcoming policy decision, which is expected to shape sentiment in the days ahead.
The benchmark FTSE 100 ended the session near flat territory, while the mid-sized FTSE 250 managed a modest rise of 0.2%, reflecting selective buying rather than broad-based confidence.
Industrial Drag Weighs on the Market
Industrial stocks were the weakest performers of the day, sliding 1.6% and placing the heaviest pressure on the broader market. Travel and leisure shares also struggled, retreating 1.2% as investors stayed wary of consumer demand and cost pressures.
Low-cost airline Wizz Air saw its shares fall 1.4% after seeking approval to launch transatlantic services between the UK and the United States. While the move signals ambition to tap into a lucrative market, investors appeared cautious about execution risks and rising competition.
Trade Tensions Keep Investors on Edge
Market sentiment remained fragile following last week’s turbulence, which was triggered by U.S. President Donald Trump’s tariff threats linked to Greenland against Britain and other European countries. Although the proposal has since been withdrawn, concerns linger over whether tariffs could become a recurring bargaining tactic in future trade negotiations.
Investors continue to assess the longer-term impact such uncertainty could have on global trade flows and corporate profitability.
Mining and Healthcare Offer Support
Providing some relief, precious metal miners surged to record highs, jumping 5.4% as rising metals prices and optimism around commodities lifted the sector. Industrial metal miners also advanced 1.4%, supported by expectations of sustained demand and a stronger outlook for raw materials.
Healthcare stocks added to the market’s stability, climbing 1.1%. Heavyweights AstraZeneca and GSK both gained more than 1%, reflecting steady investor confidence in defensive sectors.
Banks and Economic Signals in Focus
Banking shares rose 0.8%, with HSBC and NatWest expected to follow European peers in raising profit targets when they report annual results in the coming weeks, according to sources familiar with the matter.
On the domestic front, Britain’s economy has shown tentative signs of improvement since Chancellor Rachel Reeves delivered her annual budget in November. The recovery follows months of uncertainty that weighed on businesses and households alike.
Fed Decision Looms Large
Attention now turns firmly to the U.S. Federal Reserve, which is widely expected to keep interest rates unchanged later this week. However, growing debate over the central bank’s independence is likely to dominate headlines and influence market confidence.
Corporate Movers
Among individual stocks, Spire Healthcare soared nearly 18% after confirming it is in early talks with several private equity firms, including Bridgepoint and Triton Partners, about potential strategic options. In contrast, Bridgepoint shares slipped 2.3% following the announcement.
Overall, the session reflected a market caught between caution and selective optimism, with investors waiting for clearer signals before committing to stronger positions.
