FX.co ★ FTSE 100 Weighed Down by Defence Stocks

The FTSE 100 experienced a relatively stable to slightly downward trend on Monday, as investors honed in on renewed negotiations for a potential peace agreement in Ukraine. This shift in focus put pressure on stocks within the defense sector, which typically thrive amid ongoing geopolitical unrest. Consequently, shares of BAE Systems dropped approximately 1.5%, while Rolls-Royce saw a decrease of around 1%, as concerns grew that any de-escalation in the conflict might curtail future defense expenditures and contract inflows. On the flip side, healthcare stocks lent some stability to the index. AstraZeneca inched up by about 0.6%, and GSK rose by roughly 0.5%, aligning with upbeat trends in the European biotech sector. This positivity followed a nearly 5% surge in the shares of French clinical-stage pharmaceutical company Abivax, driven by speculation of a takeover and heightened optimism regarding its primary drug candidate for treating ulcerative colitis, bolstering sentiment around major pharmaceutical companies.