The FTSE 100 slipped 0.3% on Monday as heavy losses in miners and pharmaceutical shares outweighed gains from banks and takeover targets. easyJet jumped on a firmer bid but stayed well under the offer price, showing investors still price the risk that the deal fails.
The FTSE 100 closed down 27.26 points at 10,651.77, a 0.3% decline, while the FTSE 250 dropped 0.2%. The index had reached 10,733.39 earlier in the session before fading, and it now sits around 2.6% under its February 2026 record high of 10,934.94. Even after the pullback, the benchmark remains up 20.95% over the past year.
Miners and pharma drag the index
The decline was concentrated rather than broad. Precious metal miners fell 2.2% and pharma and biotech shares slid 2.1%, the two groups doing most of the damage. AstraZeneca lost 2.5% and GSK slipped 1.6%, according to Reuters.
By contrast, deal names and banks limited the drop. HSBC, Shell and BAE Systems gained 1.01%, 0.73% and 2.20%, cushioning the index as heavier sectors weighed.
Deal risk keeps easyJet below the offer
Takeover activity gave the market its clearest lift. easyJet gained 9.3% to finish at 610p, yet the stock stayed 11.6% under Castlelake's 690p cash offer. The airline's board said it is ready to back the bid if it goes firm, and the UK set an Aug. 3 "put up or shut up" deadline.
That gap is the point. According to Reuters, David Morrison, senior market analyst at Trade Nation, said: "There's plenty of U.S. money but also Chinese money." The low premium to the offer shows the market waiting to see whether ownership rules and the deal actually clear.
Rates and forecasts cap the upside
Monetary policy stayed in focus. The Bank of England holds its Bank Rate at 3.75%, with the next rate decision due July 30. Meanwhile analysts see limited room above current levels: AJ Bell's 10,750 target for end-2026 sits less than 1% above Monday's close, and UBS's 11,000 base case is only 3.3% higher. That leaves earnings upgrades, buybacks and individual deals doing the work rather than a broad UK re-rating.
Source: Bez Kabli
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