UK stocks fall, dragged down by industrials; Powell speech in focus

Reuters12-02
UPDATE 1-UK stocks fall, dragged down by industrials; Powell speech in focus

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FTSE 100 down 0.2%, FTSE 250 down 0.7%

Melrose slides, names new CFO

US announces zero tariff pharmaceutical deal with Britain

Updates after markets close

Dec 1, 2025 - UK stocks dipped on Monday, dragged down by losses in industrials stocks, amid a general risk-off global sentiment across markets, with investors monitoring domestic data sets and the U.S. Federal Reserve monetary path.

The blue-chip FTSE 100 .FTSE ended down 0.2%. The domestically focused FTSE 250 .FTMC lost 0.7%, logging its biggest one-day drop in two weeks.

Aerospace and defence stocks .FTNMX502010 led sectoral losses, down 2.8%. Melrose MRON.L, which announced a new CFO, fell 4.6%, while Rolls-Royce RR.L and BAE Systems BAES.L lost 2.9% and 2.5%, respectively.

U.S. and Ukrainian officials held talks on Sunday regarding a peace deal with Russia, with Secretary of State Marco Rubio optimistic about progress toward ending the more than three-year war.

Homebuilders .FTNMX402020 fell 1.3%, with Barratt Redrow BTRW.L down 1.5% and Bellway BWY.L down 1.8%.

Surveys showed weak manufacturing in the biggest economies globally in November, impacted by weaker demand and tariff uncertainties.

On the flip side, precious metal mining stocks .FTNMX551030 added 4.9%, tracking gold prices that rose to a six-week high. Fresnillo FRES.L rose 7.1% to hit a record high, while Hochschild Mining HOCM.L climbed 3.7%.

Industrial miners .FTNMX551020 gained 1.1% with Anglo American AAL.L and Antofagasta ANTO.L rising 1.4% and 2.2%, respectively.

Meanwhile, domestic data showed that Britain's services sector declined at the fastest pace in three years in the three months to November, while a Bank of England policymaker said more signs of weakening labour market is required for a rate cut in December.

Separately, the manufacturing PMI increased for the first time last month since September 2024, a survey showed.

Across the Atlantic, U.S. Fed Chair Jerome Powell's speech later in the day will be scrutinized for fresh clues on the interest rate path.

Among other stocks, Reckitt RKT.L rose 2.4% after a Barclays upgrade. HICL Infrastructure HICL.L and The Renewables Infrastructure Group TRIG.L said they had abandoned plans for a proposed merger. Shares in TRIG fell 4.2%, while HICL gained 3.4%.

Additionally, the U.S. and Britain announced a deal to secure zero tariffs on British pharmaceutical products and medical technology in return for Britain spending more on medicines and overhauling how it values drugs.

(Reporting by Utkarsh Tushar HathiEditing by Vijay Kishore and Frances Kerry)

((utkarshtushar.hathi@thomsonreuters.com))

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