Stocks Slip as Financial and Energy Shares Decline Amid Peace Talks

Britain's key stock indexes experienced minor declines on Monday, driven by downturns in financial and energy sector shares, as investors closely watched U.S.-led peace negotiations involving Russia and Ukraine.

By mid-morning GMT, the FTSE 100 had slipped by 0.1%, staying well below its record high from Friday, although it closed the previous week with some gains. The FTSE 250 also decreased by 0.1%. Investors are cautiously anticipating a meeting between U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskiy, and European leaders, as Trump's recent meeting with Russian President Vladimir Putin hinted at a preference for a comprehensive peace deal with Ukraine.

The energy sector fell 0.6% amid volatility in the oil markets, influenced by signals from Washington regarding potential sanctions on Russian oil. The financial sector underperformed, with indices for life insurers and banks declining by 1% and 0.4% respectively. In contrast, defensive stocks such as precious metal miners, healthcare, and utilities rose by over 0.5% each.

Economic data revealed a decrease in the asking prices for newly advertised British properties in the last four weeks, although sales achieved their highest July levels since 2020. A homebuilders' gauge increased by 0.9%. Market attention will shift to the Jackson Hole symposium later this week, where U.S. Federal Reserve chair Jerome Powell may signal future interest rate trends. Notably, bootmaker Dr Martens' stock surged by 8.4% following an upgrade by Peel Hunt.

(With inputs from agencies.)