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The UK's FTSE 100 posted modest gains on Monday as investors shifted their focus to defensive sectors like pharmaceuticals and consumer staples amid a global downturn in energy and metal stocks. The blue-chip index rose 0.8% despite broader market volatility. The precious metals mining sector experienced a sharp decline, dropping 4.9% to its lowest level in three weeks. Key players, including Endeavour Mining and Fresnillo, saw significant losses, each falling nearly 5%. Other major London-listed mining firms were also impacted, with Glencore down 2.4% and Rio Tinto slipping 1.1%, as the selloff extended to silver and industrial metals.

The selloff was triggered by U.S. President Donald Trump's announcement of Kevin Warsh as his nominee for the next Federal Reserve chair, prompting investors to reduce leveraged positions and adopt a more cautious stance. Defensive sectors, which typically perform well during periods of economic uncertainty, benefited from this shift. Healthcare stocks rose 1.3%, bolstered by a 1.4% gain in AstraZeneca shares, while the personal care sector gained momentum with Unilever climbing 2.2%, making these stocks key contributors to the FTSE 100's resilience.

In the energy sector, easing geopolitical tensions between the U.S. and Iran led to a decline in crude oil prices, pulling energy stocks down by 1.6%. Industry heavyweights Shell and BP were not immune, falling 1.5% and 1.7%, respectively. Looking ahead, investors are turning their attention to the Bank of England’s policy meeting on Thursday. The central bank is widely expected to hold interest rates steady at 3.75%, with limited clarity on the timing of future rate cuts as it continues to monitor inflation closely. Meanwhile, a recent survey indicated that most British businesses plan to implement pay raises this year, with increases likely ranging between 3% and 3.49%. These figures slightly exceed the comfort levels of some Bank of England policymakers as they aim to bring inflation back to target levels.

TECHNICAL & TRADE VIEW - FTSE100

• Daily VWAP Bullish
• Weekly VWAP Bullish
• Above 10150 Target 10370
• Below 10070 Target 9950

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