The FTSE 100 gave back early gains on Monday to close 0.3% lower, dragged down by gold miners, AstraZeneca and soft UK construction data. easyJet led the FTSE 250, jumping 9.3% on a takeover approach.
London's blue-chip index surrendered its early advance on Monday, closing down 27.26 points, or 0.3%, at 10,651.77. The mid-cap FTSE 250 fell 0.2% to 23,504.22, while the AIM All-Share bucked the trend, rising 0.3% to 778.74.
Miners and pharma lead the decline
A softer gold price pressured precious metals names, with Fresnillo down 2.4% and Endeavour Mining falling 2.5%. Gold itself slipped to USD4,148.94 an ounce from USD4,167.57 on Friday.
Pharmaceuticals added to the drag. AstraZeneca fell 2.5%, weighing heavily on the index, while sector peer GSK declined 1.6%. On the upside, Relx, St James's Place and BAE Systems were among the biggest risers.
Construction data dents sentiment
Sentiment was hurt by further weakness in the UK construction sector. The S&P Global UK construction purchasing managers' index edged up to 38.4 in June from 38.2 in May, but stayed well below the 50-point mark that separates growth from contraction.
Across the Channel, the CAC 40 in Paris closed 0.3% lower, while Frankfurt's DAX 40 gained 0.2%.
easyJet jumps on takeover talk
The standout came from the mid-cap FTSE 250, where easyJet jumped 9.3% after confirming an agreement in principle over a possible takeover by US private equity firm Castlelake. The Luton-based airline said Castlelake's fifth proposal valued the company at 690p per share, with the board minded to recommend the offer if a firm bid arrives by the 3 August deadline.
ITV also drew attention, slipping 0.1% after unveiling plans to return £950 million to shareholders following the agreed sale of its Media & Entertainment arm to Sky for up to £1.6 billion.
Source: Share Talk
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