FTSE 100 Dips as Ceasefire Hopes Impact Defence Stocks

London's FTSE 100 saw a decline as a potential Russia-Ukraine ceasefire impacted defense stocks. The anticipated agreement between the U.S. and Ukraine led to a selloff in defense shares. Meanwhile, individual stocks like International Personal Finance saw gains following a takeover agreement.

On Monday, London's FTSE 100 experienced a slight decrease as hopes for a Russia-Ukraine ceasefire exerted pressure on defense stocks during the last trading week of the year. This followed U.S. President Donald Trump's announcement that a peace agreement with Ukraine might be imminent.

The prospect of peace led to declines in defense shares: Babcock International dipped 3%, Chemring Group fell 1.5%, while BAE Systems and Rolls-Royce decreased by 1.3% and 1.1%, respectively. Consequently, the FTSE's aerospace and defense index dropped 1.2%.

Despite these declines, International Personal Finance saw a 5.4% surge after agreeing to a takeover by BasePoint Capital-associated company. Meanwhile, industrial metal miners gained 0.9% following a rally in copper prices, contributing to FTSE 100's impressive 20.7% surge this year, outperforming other global markets.

(With inputs from agencies.)