It’s a downbeat start to trading on Monday with the FTSE 100, down by 0.82% to 7,159.70, giving up some of last week’s gains.
“The oil and mining sectors helped drag down the index as BHP confirmed it was in talks over an exit from its petroleum division,” says AJ Bell investment director Russ Mould.
The commodities-related sell-off also followed weak data from China where retail sales slumped – raising questions over demand from the resources-hungry nation.
“The aerospace and defence sector was in focus thanks to the latest M&A news as Meggitt sanctioned a takeover deal from Parker Hannifin while Cobham and Ultra Electronics agreed terms on a merger,” said Mould.
“The downside for UK investors is yet another part of the market is being hollowed out, reducing the breadth and diversity on offer from London-listed shares.”
FTSE 100 Top Movers
London Stock Exchange (0.71%), Ocado Group (0.62%) and British Land (0.52%) are the three companies at the top of the index in which only a handful is in the green on Monday.
At the other end, Burberry (-2.98%), Glencore (-2.37%) and JD Sports (-2.27%) make up the bottom three on the FTSE 100.