U.K. stocks declined on Monday following a rise last week fueled by optimism that the U.S. economy might avoid a recession, along with expectations of interest rate cuts prompted by cooling inflation.
The FTSE 100 index fell by 14 points, or 0.2%, to 8,297, continuing a downward trend after a 0.4% drop on Friday.
Aerospace and defense sector stocks saw a slight downturn following reports that Germany, the second-largest benefactor to Ukraine, plans to reduce its military aid to Kyiv by half in 2025 due to budget cuts. Specifically, BAE Systems experienced a 2.7% drop, Rolls-Royce Holdings saw a 2.1% decline, and Chemring decreased by 1%.
In contrast, shares in Plus500 surged by 4.1% after the online trading platform posted strong interim results and issued a forecast suggesting its annual performance would exceed market expectations.
Among housebuilders, Barratt Developments rose by 0.8% and Redrow jumped by 2.3%. The two companies announced via a joint statement that their merger deal is slated for completion later this week.
