The FTSE 100 experienced a 0.5% decline on Monday, retracting from a 1.5% gain achieved over the previous week, as investors turned their attention to a pivotal UK-EU summit taking place in London. Discussions between British Prime Minister Keir Starmer and European Commission President Ursula von der Leyen are anticipated to result in the announcement of a new defense and security pact, alongside agreements aimed at reducing trade barriers, enhancing youth mobility, and streamlining regulations. Negotiators have brokered a deal to strengthen UK-EU relations, encompassing collaboration on pressing global issues, such as the ongoing conflict in Ukraine initiated by Russia. Market confidence was further affected by Moody’s decision to downgrade the credit outlook of the US government.
In corporate developments, Diageo saw a 2.6% increase in its share price following the revelation of a better-than-expected 5.9% growth in organic sales for the third quarter, although it maintained its full-year forecast. Ryanair issued a warning that its profits are susceptible to uncertainties arising from trade tensions and broader economic risks. Additionally, BT is on the verge of finalizing a deal to divest its shares in TNT Sports to Warner Bros. Discovery.
