UK shares inched lower on Monday as renewed Middle East hostilities weighed on risk sentiment, while investors also awaited a highly anticipated speech from Andy Burnham, who is widely expected to be Britain's next prime minister, reports Reuters.
The blue-chip FTSE 100 index fell 0.2 per cent by 0949 GMT, while the midcap FTSE 250 slipped 0.1 per cent. Consumer staple shares weighed on the FTSE 100 after British American Tobacco dropped 1.6 per cent on the tobacco giant's plans to reduce its workforce by 20 per cent.
Aerospace & defence stocks came under pressure with BAE Systems and Babcock falling 1.4 per cent and 7 per cent, respectively. The Ministry of Defence said on Sunday that the UK will scrap plans to replace its ageing destroyers to focus on drone warships.
Mining shares were lower due to a decline in gold after the recent escalation in the Mideast fueled inflation concerns. Keeping losses in check were energy and financial shares.
BT and Verizon announced a deal to combine their international enterprise operations into a 50:50 joint venture. Shares of the British telecoms group were marginally up.
In politics, investors awaited Labour lawmaker Burnham's speech for clues on his fiscal policy plan and thinking on the economy.
London stocks dip ahead of Burnham speech
FE Team | Published: June 29, 2026 23:09:51
London stocks dip ahead of Burnham speech
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