FTSE 100 edges down with consumer staples, industrials stocks dragging

Nov 24 (Reuters) - London's FTSE 100 edged lower on Monday, as consumer staples and industrials stocks weighed, while investors awaited the British government's highly anticipated budget this week.

The blue-chip index .FTSE closed down 0.1%, while the mid-cap FTSE 250 .FTMC added 0.2%, bouncing from its longest losing streak in more than two years.

Aerospace and defence stocks .FTNMX502010 fell 1.7% as peace talks to end the war in Ukraine progressed. BAE Systems BAES.L fell 3.6%, while Babcock International BAB.L lost 1.6%.

Beverage stocks .FTNMX451010 declined 1.8%, with Diageo DGE.L down 2.2%. The personal care, drug and grocery sub-index .FTNMX452010 fell 1.2%, with Marks & Spencer MKS.L falling 2.6%. Utilities .FTUB6510 lost 1.3%.

On the flip side, banking stocks .FTNMX301010 rose 1%. Morgan Stanley analysts estimated net interest income growth of 4% next year for European banks.

Standard Chartered STAN.L climbed 2.9% after the analysts upgraded the lender to "overweight". Barclays BARC.L added 2.1% after Morgan Stanley named it a top pick.

Precious metal miners .FTNMX551030 rose 5.9% as gold prices climbed on stronger Fed rate-cut bets. Fresnillo FRES.L surged 9.1%, while Endeavour Mining EDV.L gained 4%.

Homebuilders' stocks <.FTNMX402020> advanced after Goldman Sachs initiated coverage with a “constructive outlook”. Vistry VTYL.L rose 3.8%.

Travel and leisure stocks .FTNMX405010 advanced 1.7%, with EasyJet EZJ.L up 3.6%.

The mid-cap index has shed around 5% from its October peak amid global market weakness and budget uncertainty.

Finance minister Rachel Reeves looks set to raise taxes by tens of billions of pounds for the second time since the 2024 election to meet her borrowing targets, hoping to avoid a bond market selloff while also increasing welfare spending.

She is unlikely to break an election promise by raising income tax and will resort instead to increases in a range of other taxes.

Meanwhile, global stocks climbed after comments from a U.S. Federal Reserve official last week boosted expectations for a December rate cut. The gains followed a sharp pullback in equity markets on concerns over elevated valuations in AI stocks.

Anglo American AAL.L gained 0.9% after global miner BHP BHP.AX abandoned a last-ditch effort to buy its rival.