The FTSE 100 finished modestly lower on Monday as investors remained cautious following a volatile weekend marked by missile and drone attacks involving Iran and retaliatory US strikes on Iranian military targets.
London’s blue-chip index closed down 0.09% at 10,508 points, while the FTSE 250 underperformed, falling 0.57% to 23,014.85, as broader risk appetite weakened.
Market sentiment was dominated by geopolitical uncertainty, with traders closely monitoring developments in the Middle East for any potential impact on global energy supplies and inflation. Although oil prices remained relatively contained, concerns over regional stability prompted investors to adopt a more defensive stance.
The cautious tone followed a mixed session across global markets, with traders weighing geopolitical risks against expectations for interest rates and economic growth. Defensive sectors proved more resilient, while economically sensitive stocks and mid-cap companies came under greater pressure.
Investors will continue to watch developments in the Middle East alongside upcoming economic data and central bank commentary for further direction later in the week.
Meanwhile, BT Group edged up 0.51% after agreeing to merge its international enterprise operations with Verizon in a new 50:50 joint venture.
The combined business is expected to generate around $4 billion in annual revenue, serving multinational customers across global markets.
Under the terms of the deal, Verizon will make a $625 million equalisation payment to BT, while both companies will retain equal ownership and voting rights in the new venture.
