The FTSE 100 Index Closes 0.82% Lower

The FTSE 100 Index decreased 85 points or 0.82 percent on Monday to close at 10324 points. The decline was led by Rolls-Royce (-5.50%), BAE Systems (-5.14%) and Persimmon (-5.01%). On the upside, the strongest performers were Easyjet Plc (7.66%), The Sage Group (7.29%) and Entain (5.21%).

The FTSE 100 fell more than 0.5% on Monday as reports that Iran would halt talks with the US undermined hopes for an extension of the ceasefire and highlighted growing tensions following Israel’s expanded operations in Lebanon. Defence stocks led the declines, with BAE Systems down 5%, Babcock losing 4.5% and Rolls Royce falling 5.5%. Major banking and pharmaceutical shares also came under pressure, weighing on the index. In contrast, oil majors Shell and BP gained 2.7% and 3.1% respectively as crude prices advanced. EasyJet surged more than 7.5% after responding to reports of takeover interest from Castlelake, stating it had not received any approach or proposal. Entain added over 5% following a report that a takeover bid may be in preparation for its US joint venture partner. On the data front, Nationwide reported that UK house prices fell 0.6% in May, marking the largest monthly decline since June 2025 and exceeding economists’ expectations.

The FTSE 100 traded lower on Monday as investors monitored developments in the Middle East after the US and Iran exchanged messages over the weekend regarding a draft agreement to extend the ceasefire and reopen the Strait of Hormuz. Sentiment was also affected by reports that Israel expanded its ground operations in Lebanon, undermining a previous truce. Mining stocks were among the biggest decliners, with Fresnillo and Endeavour Mining down nearly 3%. Defence names also retreated, with BAE Systems falling more than 2%, Babcock down 1.8% and Rolls Royce losing 1.7%. In contrast, oil majors Shell and BP gained 1.1% and 0.8% respectively. EasyJet surged more than 10% after responding to reports of takeover interest from Castlelake, stating it had not received any proposal. Meanwhile, Nationwide reported that UK house prices fell 0.6% in May, marking the largest monthly decline since June 2025.