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London's main stock index fell on Monday, ending a streak of four consecutive weeks of gains, as investors adopted a cautious stance ahead of anticipated U.S.-China talks. Senior officials from both nations convened in London, raising hopes among investors for progress in easing trade tensions between the world’s two largest economies. These discussions follow last week’s phone call between the two countries' presidents, during which they agreed to continue negotiations amidst a deepening global trade war, which has escalated from retaliatory tariffs to export restrictions.

British Finance Minister Rachel Reeves is set to meet with Chinese Vice Premier He Lifeng, though details of the agenda remain undisclosed. Most sectors saw declines, with aerospace and defence stocks leading losses, dropping 0.9% and marking their third consecutive session in the red. Pharmaceutical stocks also slipped by 0.8% as investors moved to lock in profits. Last week, London stocks closed with gains, buoyed by a U.S. jobs report that alleviated fears of an economic slowdown in the world’s largest economy, despite ongoing tariff-related volatility.

Single Stock Stories & Broker Updates:

• WPP shares fell 1.2% to 551p, among the top losers on the FTSE 100, which dropped 0.02%. CEO Mark Read will retire at year-end after seven years. Of 14 brokerages, 2 rate the stock "buy," 8 "hold," and 4 "sell," with a median price target of 647.64 pounds. Year-to-date, the stock is down nearly 32.4%.

• Shares of British semiconductor firm Alphawave jumped 22% to 182p, after Qualcomm agreed to buy AWE for about $2.4 billion, offering shareholders 183p per share—nearly a 96% premium. With multiple takeover extensions from the UK's panel, Qualcomm is also considering alternative share offers. AWE's shares have risen 77% this year.

• Frasers Group shares rose 1.5% to 729.25 pence, while Revolution Beauty shares increased 9.4% to 7.9 pence. Revolution Beauty is exploring a potential takeover by Frasers Group among others, following a sale process initiated in May due to declining sales and a settlement with ex-CEO Adam Minto that diminished its value by 70%. As of the last close, FRAS stock is up ~21.18%, and REVB is down ~50% YTD.

• Shares in Spectris rose 15.3% to 2,359p, the highest since March 24, following a takeover proposal from Advent offering £37.35 ($50.62) per share. SXS finds the proposal recommended to shareholders, with Advent having until July 7 to make a firm offer. Despite the gains, the stock is down approximately 6% year-to-date.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8700

• Primary support 8500
• Below 8500 opens 8250
• Primary objective 8900
• Daily VWAP Bullish
• Weekly VWAP Bullish

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