2nd Mar 2026 11:56
(Alliance News) - Stock prices in London were mostly lower midday on Monday, as conflict continues in the Middle East and following news of slower-than-expected growth in UK manufacturing.
UK mortgage approvals unexpectedly declined in January, data from the Bank of England showed. According to the central bank, mortgage approvals fell to 59,999 in January, from 61,007 in December. The latest reading was the lowest since 55,946 in January 2024 and were below the FXStreet cited consensus of 62,000.
UK manufacturing growth was worse than expected in February, survey results showed.
The S&P Global manufacturing purchasing managers' index edged down a notch to 51.7 points in February from January's 17-month high of 51.8 points, underperforming against the flash reading of 52.0 points. Even so, manufacturing production in the UK rose for the fifth consecutive month, with the rate of expansion the fastest since September 2024, according to the survey.
The FTSE 100 index was down 107.93 points, 1.0%, at 10,802.62. The FTSE 250 was down 263.04 points, 1.1%, at 23,494.11, and the AIM all-share was down 1.37 points, 0.2%, at 818.16.
The Cboe UK 100 was down 1.0% at 1,075.34, the Cboe UK 250 was down 1.2% at 20,724.07, and the Cboe small companies was up 0.3% at 18,549.06.
Housing stocks were in the red on Monday, after the mortgage approvals data and earlier news that UK house prices rose 1.0% on an annual basis in February, surpassing FXStreet-cited consensus for a 0.7% rise, and unchanged from January's growth rate.
Berkeley Group was down 0.7%, while Rightmove lost 0.9%. Barratt Redrow fell 1.1%, and Persimmon by 2.0%.
Also on the FTSE 100, Bunzl was the third-highest stock, up 2.1%.
The London-based distribution and services company said pretax profit decreased 7.9% to GBP620.5 million in 2025. Basic earnings per share declined 5.4% to 141.5 pence. Adjusted operating profit fell 6.7% to GBP910.3 million, with the operating margin narrowing to 7.7%.
However, revenue increased 0.6%, or 3.0% at constant exchange rates, to GBP11.85 billion, driven by acquisitions, and Bunzl said the annual decline in operating margin moderated in the second half, reflecting among other things an improved operating performance in its largest business in North America.
For 2026, Bunzl reiterated guidance for "moderate revenue growth at constant exchange rates" and an "operating margin slightly down year-on-year".
Oxford Nanopore was the lowest FTSE 250 constituent, down 18%.
Revenue for 2025 jumped 22%, or 24% at constant exchange rates, to GBP223.9 million. Its pretax loss narrowed slightly, to GBP139.9 million, while adjusted Ebitda narrowed to a GBP86.7 million loss from GBP117.9 million.
The company reaffirmed its commitment to reach adjusted Ebitda breakeven in 2027, and to become cash flow positive in 2028.
In smaller caps, Gulf Keystone lost 5.9%.
The energy company has temporarily halts production at the Shaikan field in Iraq, "in light of the developing regional security environment" throughout the Middle East. Gulf Keystone said it took the measure to protect staff but says its assets have not been affected.
In European equities on Monday, the DAX 40 in Frankfurt was down 1.1%.
Retail sales in Germany declined more than anticipated on-month in January, as December's figures were revised significantly higher, data published by the Federal Statistical Office showed.
Retail sales declined 0.9% in January after a 1.2% rise in December, which was sharply revised up from growth of just 0.1%. The FXStreet-cited consensus was for a 0.2% dip in January. Annual growth slowed to 1.2% in January from a 2.5% increase in December, which was revised up from 1.5%.
The German manufacturing purchasing managers' index returned to expansion territory for the first time since June 2022, survey publisher S&P Global reported.
The headline HCOB Germany manufacturing PMI posted 50.9 points in February, above the 50 mark which separates growth from contraction, up from 49.1 in January. February's reading was above the 50.7 flash reading. It was also the index's first time in growth territory in over three and a half years, "driven in large part by stronger increases in both output and new orders."
The CAC 40 in Paris was down 1.6%.
France's manufacturing sector saw slower growth in February but performed better than the initial estimate of a slight decline, final survey results from S&P Global showed.
The Hamburg Commercial Bank manufacturing purchasing managers' index fell to 50.1 points in February from January's 43-month high of 51.2 points. However, it outperformed the flash reading of 49.9 points, which being below the neutral 50-point mark would have meant a slight decline in manufacturing activity.
The pound was quoted lower at USD1.3414 at midday on Monday in London, compared to USD1.3458 at the equities close on Friday. The euro stood at USD1.1733, against USD1.1818. Against the yen, the dollar was trading at JPY156.91 compared to JPY156.05.
Stocks in New York were called lower. The Dow Jones Industrial Average was called down 1.0%, the S&P 500 index down 1.0%, and the Nasdaq Composite down 1.4%.
The yield on the US 10-year Treasury was quoted at 3.97%, narrowing from 3.98%. The yield on the US 30-year Treasury was quoted at 4.63%, narrowing from 4.64%.
Brent oil was quoted at USD78.22 a barrel at midday in London on Monday, up from USD72.71 late Friday.
Oil and defence stocks remained high on the FTSE 100. BAE lead, up 5.1%, followed by Shell rising 2.3%. BP was fourth, up 2.1%, while Babcock rose 0.8%.
But travel stocks continued to struggle, with easyJet down 3.7% and International Consolidated Airlines down 5.6%. Over on the FTSE 250, Wizz Air fell 6.3%.
Airspace closures in the Middle East are disrupting hundreds of thousands of airline passengers globally, with a leading aviation consultant describing the situation as "a mess".
Several Middle Eastern airports act as hubs for passengers travelling between Europe and the continents of Asia and Australia.
Analytics company Cirium said 1,579 out of 3,990 flights scheduled to operate to the Middle East on Sunday were cancelled.
This included 747 to the United Arab Emirates and 285 to Qatar.
About half a million passengers use airports in Dubai, Doha or Abu Dhabi each day.
Gold was quoted higher at USD5,394.99 an ounce against USD5,235.52 on Friday.
Endeavour Mining rose 1.8% on the FTSE 100. Fresnillo was close behind, up 1.1%.
Still to come on Monday's economic calendar, the US and Canada have manufacturing PMIs.
By Emma Curzon, Alliance News reporter
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