On Monday, British equities fell after a failed mercenary mutiny in Russia, but Aston Martin shares rose after a partnership with a U.S. electric vehicle producer.
After Wagner group fighters staged a mutiny in Russia over the weekend, the aerospace and defense sector (.FTNMX502010) fell 2.1%, and the blue-chip FTSE 100 (.FTSE) fell 0.4% to a three-month low.
“Defence stocks tend to benefit from bad news in terms of geopolitical tensions,” said Accendo Markets trading floor manager Christopher Peters.
British defense giant BAE Systems (BAES.L) fell 3.1% to the bottom of the FTSE 100.
The domestic-focused FTSE 250 midcap index (.FTMC) slid 0.5% to a three-month low.
Lloyds (LLOY.L) slumped 1.9% after JP Morgan downgraded it to “underweight” from “neutral.”FTNMX301010 fell 1.1%.
Aston Martin (AML.L) rose 10.1% after announcing a strategic supply arrangement with Lucid Group (LCID.O) to build electrified cars.
Copper prices lifted industrial metal miners (.FTNMX551020) by 0.6%.
After two straight quarters of gains, the exporter-heavy FTSE 100 is on track to incur quarterly losses in the penultimate week of the quarter as rising domestic inflation and Bank of England interest rate hikes weighed equities.
The Bank for International Settlements, the world’s central bank umbrella group, urged for more interest rate hikes over the weekend, saying the world economy was at a critical stage as countries fight to control inflation.
Cineworld Group (CINE.L) fell 28.9% after announcing a reorganization plan to file for administration.
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