UK midcaps dip as industrials, financials drag

December 1, 2025 - UK midcaps dipped on Monday, pulled down by financial and industrial shares, amid a general risk-off global sentiment across markets, with investors monitoring domestic data sets and the U.S. Federal Reserve monetary path.

The domestically focussed FTSE 250 .FTMC was down 0.8%, and on track to have its biggest one-day drop in two weeks.

The blue-chip FTSE 100 .FTSE was flat in choppy trading by 11:48 GMT.

Aerospace and defence stocks .FTNMX502010 led sectoral losses, with aircraft manufacturer Rolls-Royce RR.L and defence engineering firm BAE Systems BAES.L falling 3% and 2.8%, respectively.

U.S. and Ukrainian officials held talks on Sunday regarding a peace deal with Russia, with Secretary of State Marco Rubio optimistic about progress toward ending the more than three-year war.

Homebuilders .FTNMX402020 fell 1.5%, with Balfour Beatty BALF.L, Bellway BWY.L, and Taylor Wimpey TW.L dropping over 1.5%.

Keeping losses in check, precious metal mining stocks .FTNMX551030 added 3.6%, tracking metal prices. Hochschild Mining HOCM.L and Fresnillo FRES.L rose more than 5% each.

Domestic data showed that Britain's services sector declined at the fastest pace in three years in the three months to November.

Separately, the manufacturing PMI increased for the first time last month since September 2024, a survey showed.

Across the Atlantic, Fed Chair Jerome Powell's speech later today will be scrutinized by investors for hints on the monetary policy path ahead of next week's central bank meeting.

Among other stocks, Melrose MRON.L fell 5.9%. The GKN Aerospace owner named Ross McCluskey as the new CFO, effective in 2026.

HICL HICL.L rose 4.4% after the investment firm said it had abandoned plans for a proposed merger with The Renewables Infrastructure Group TRIG.L, which fell 3.6%.

The merger would have formed the UK's largest listed infrastructure investment company, with net assets exceeding 5.3 billion pounds ($7.01 billion).

($1 = 0.7559 pounds)