FTSE 100 Dips Amid Defence, Gold Stock Slumps Post Best Week

The FTSE 100 index dipped 0.2% on Monday after a strong prior week, influenced by declines in aerospace, defense, and precious metal stocks. Investor caution is heightened in a holiday-shortened trading week, while future economic uncertainties include Donald Trump's potential US policies and the UK budget impacts.

On Monday, London's FTSE 100 recorded a 0.2% decline, driven by aerospace and defense stocks leading the market downturn, following its best week in five.

The blue-chip FTSE 100 is poised for its fourth straight year of gains despite recent declines, with the mid-cap FTSE 250 also seeing a minor drop of 0.3%.

This bustling holiday week has traders cautious, especially considering the potential economic impacts stemming from Donald Trump's expected policies and the recent UK budget announcement. Observers also keep a keen eye on the Bank of England's monetary approach amid ongoing inflation concerns.

(With inputs from agencies.)