London shares commenced the week with a muted performance on Monday, as advances in metal miners counterbalanced declines in industrial stocks, reflecting a prevailing caution in markets following recent geopolitical disturbances. As of 1017, the blue-chip FTSE 100 index and the mid-cap index FTSE 250 were little changed.
The Week in Breakingviews newsletter provides analysis and perspectives from Reuters’ worldwide financial commentary team. Industrial shares experienced a significant decline, exerting considerable pressure on London markets, with a drop of 1.4%. Travel and leisure stocks dropped over 1%, pressured by broader geopolitical worries and rising oil prices.

The measured tone indicates ongoing investor unease following the recent upheaval triggered by U.S. President Donald Trump’s tariff threats related to Greenland, directed at Britain and other European countries. Although the threat has been retracted, discussions among investors persist regarding the enduring effects on global trade should tariffs evolve into a conventional instrument of negotiation. Recent U.S. sanctions aimed at Iran have intensified market apprehension.

On the flip side, precious metal miners hit record highs, gaining 3.6%, while industrial metal miners climbed 0.9%, buoyed by optimism over the broader commodities outlook and new peaks in precious metals. Financial shares continued to attract interest, with banks rising 0.6% and life insurers increasing by 0.8%, respectively. HSBC and NatWest are poised to align with their European counterparts by raising key profit targets when they announce their annual earnings in the forthcoming weeks, according to sources. On the economic front, Britain’s economy has exhibited indications of recovery since finance minister Rachel Reeves’ annual budget statement in November, after enduring months of uncertainty for both employers and households.

Market participants are closely monitoring the forthcoming policy decision from the Federal Reserve later this week. While the U.S. central bank is anticipated to maintain interest rates, apprehensions regarding its autonomy are expected to become a focal point. Among individual movers, private hospital group Spire Healthcare jumped 16% after announcing it is in early-stage talks with several buyout firms, including alternative asset fund manager Bridgepoint and Triton Partners, to “explore strategic options.”