The FTSE 100 dropped slightly at the beginning of the week as global markets exhibited a lack of confidence. The index declined by 7.81 points to 9712.70, as overall support from rising oil and gold prices, while cyclical and defence stocks continued to drag on demand for the index.

Winners and Losers

Endeavour Mining was a significant gainer at 1.43% to £3,540 on the back of gold price increases. Again, Fresnillo gained 1.37% to £2,670 on the same basis as Endeavour Mining.

Glencore gained 0.93% to £364.15; Reckitt Benckiser gained 0.82% to £5,900 as a result of stable consumer demand for their products.

Convatec Group gained 0.68% to £237.20, and Metlen Energy & Metals gained 0.57% to £44.35.

On the other hand, Games Workshop Group lost 0.88% to £19,240 while Next lost 0.71% to £14,020 due to pressure being placed on retailers.

The engineering and testing sectors were also under pressure; Spirax Group lost 1.27% to £6,620 and Intertek Group lost 1.73% to £4,546.

Ashtead Group also lost on the week, down 1.33% to £4,764 due to weakness in industrial and construction services, while 3i Group was down 1.58% to £3,108.

Virgin Media Fined for Failing to Protect Customers

Ofcom imposed a £23.8 million fine on Virgin Media. The regulator said that the company failed to safeguard vulnerable telecare users during the migration from analogue to digital landlines in late 2023. 

According to Ofcom, several serious incidents occurred during the transition, leading to direct risks for affected customers. The enforcement team emphasised that telecommunications providers must prioritise customer safety, especially when handling essential services. 

Airlines Complete Airbus Software Updates Smoothly

Airbus issued a global directive requiring immediate software updates to its A320 fleet. easyJet confirmed that its engineering teams worked through the weekend to complete all necessary updates without interrupting its flying programme. 

Wizz Air also reported that all 83 of its aircraft needing amendments were updated on time, ensuring its operations continued as planned.

Commodities Support Mining Stocks

Because of increases in oil prices this morning, UK-based miners experienced better prices in commodities. The Brent Crude Oil price advanced 1.8% ($63.5); this was due to OPEC signalling that they would not increase production. 

Furthermore, Gold prices increased another 0.5% ($4,239); the expectations of a potential reduction in the interest rate in the US has also contributed to raising gold prices.

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Asian and US Markets Signal Caution

In Asia, Japan’s Nikkei 225 tumbled 1.9% following soft corporate investment data and a factory PMI reading of 48.7. 

Hong Kong’s Hang Seng managed a modest 0.8% rise. In the US, the S&P 500 was down nearly 0.7% and the Dow Jones slipping 0.4%. Risk appetite remained weak, with Bitcoin falling 5% to $86,278.