FTSE 100's Rollercoaster: Record Highs and Political Unrest
The FTSE 100 faced a downturn on Monday following a record-breaking rally. Declines in Mondi shares and the resignation of France’s Prime Minister, Sebastian Lecornu, have shaken investor confidence. While energy and healthcare stocks managed minimal gains, UK banks and Aston Martin suffered losses amid political uncertainty.
The FTSE 100 hit fresh record highs last week, briefly crossing the 9,500 mark on Monday before slipping 0.1% as investors paused for breath. Shares in packaging giant Mondi plummeted by 15.4%, reaching a 12-year low, as it reported slowing growth in core profits amid weak demand and falling prices.
Political upheavals added to market volatility, with France's new Prime Minister Sebastian Lecornu resigning just hours after unveiling his cabinet, marking the shortest-lived government in modern French history. UK banks dipped 0.6% as concerns over political and fiscal stability in Europe grew.
Despite the downturn, energy stocks rose 1.4% alongside climbing crude prices, and healthcare stocks ticked up 0.1%. Meanwhile, Citigroup downgraded UK equities to 'underweight', warning of the market's defensive sector exposure. Luxury carmaker Aston Martin also struggled, declining 6.5% on the back of a grim annual loss outlook.
(With inputs from agencies.)
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