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FTSE 100 down 0.09%, FTSE 250 down 0.8%

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Defence stocks fall with Rolls-Royce, BAE Systems dropping

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HICL rises, Renewables Infrastructure ( RWFRF ) drops after axing

merger

December 1, 2025 - UK midcaps dipped on Monday, pulled

down by financial and industrial shares, amid a general risk-off

global sentiment across markets, with investors monitoring

domestic data sets and the U.S. Federal Reserve monetary path.

The domestically focussed FTSE 250 was down 0.8%,

and on track to have its biggest one-day drop in two weeks.

The blue-chip FTSE 100 was flat in choppy trading by

11:48 GMT.

Aerospace and defence stocks led sectoral

losses, with aircraft manufacturer Rolls-Royce and

defence engineering firm BAE Systems falling 3% and

2.8%, 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 fell 1.5%, with Balfour Beatty

, Bellway ( BLWYF ), and Taylor Wimpey dropping

over 1.5%.

Keeping losses in check, precious metal mining stocks

added 3.6%, tracking metal prices. Hochschild

Mining and Fresnillo rose more than 5% each.

Domestic data showed that Britain's services sector declined

at the fastest pace in three years in the three months to

November.

Separately, the manufacturing PMI increased for the first

time last month since September 2024, a survey showed.

Across the Atlantic, Fed Chair Jerome Powell's speech later

today will be scrutinized by investors for hints on the monetary

policy path ahead of next week's central bank meeting.

Among other stocks, Melrose fell 5.9%. The GKN

Aerospace owner named Ross McCluskey as the new CFO, effective

in 2026.

HICL rose 4.4% after the investment firm said it

had abandoned plans for a proposed merger with The Renewables

Infrastructure Group ( RWFRF ), which fell 3.6%.

The merger would have formed the UK's largest listed

infrastructure investment company, with net assets exceeding 5.3

billion pounds ($7.01 billion).

($1 = 0.7559 pounds)