The FTSE 100 fell after comments from Donald Trump raised fresh hopes of an end to Russia’s war in Ukraine, hitting oil and defence stocks.
Shares in energy and defence companies led losses on London’s blue-chip index after Mr Trump said on Monday that a deal to end the conflict was closer than ever. Washington said it had offered Kyiv Nato-style security guarantees and expressed confidence that Moscow would accept the proposal.
Oil prices slid on the news, with Brent crude dropping below $60 a barrel for the first time since May. Any move toward peace could ease sanctions on Russian oil, adding to existing concerns about oversupply in global markets.
“I think we’re closer now than we have been ever,” Mr Trump told reporters after speaking with Ukrainian president Volodymyr Zelensky and several European leaders.
The FTSE 100 was down 0.5%, also weighed by data pointing to a softening UK labour market. Defence groups Babcock and BAE Systems were among the biggest fallers, dropping 6% and 2.5% respectively.
By contrast, the FTSE 250 edged up 0.1%, supported by rising expectations that the Bank of England will cut interest rates this week as economic momentum weakens.
