Market Overview

The FTSE 100 opened higher on Monday but pared gains to close 0.3% lower, finishing at a level 0.26% below the previous close. The decline was led by a rout in precious‑metal mining stocks after gold retreated from a two‑week high.

Commodity and Currency Context

Gold spot prices fell 0.90% to $4,138.37 per ounce, while gold futures for August delivery rose 0.59% to $4,150 an ounce. A firmer US dollar, driven by market anticipation of the U.S. Federal Reserve’s policy meeting minutes later in the week, weighed on bullion demand. Brent crude for September delivery was down 0.47% at $71.78 a barrel and WTI crude for August delivery slipped 0.52% to $68.33 a barrel.

Geopolitical and Economic Backdrop

Russian President Vladimir Putin and U.S. President Donald Trump held a 90‑minute phone call, described by Russia’s foreign ministry as “businesslike and highly constructive,” with Trump reaffirming readiness to facilitate an early cessation of hostilities in Ukraine. Ukrainian President Volodymyr Zelensky also reported a “very good call” with Trump, noting a real prospect of ending the war.

OPEC+ Production Decision

Seven OPEC+ members – Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman – agreed to raise combined oil production by 188,000 barrels per day starting in August, marking the fifth consecutive monthly increase.

UK Corporate Transactions

EasyJet agreed to a £5.5 billion takeover by U.S. investment firm Castlelake at £6.90 per share, a deal that could reshape Europe’s aviation sector. ITV announced the sale of its media and entertainment division to Sky for £1.6 billion, while retaining ITV Studios and adding Love Productions to its portfolio. Ocado disclosed that CEO Tim Steiner will remain in his role until the start of 2028 before transitioning to a founder position through 2029 as part of the company’s succession plan.

Domestic Economic Indicator

The Society of Motor Manufacturers and Traders reported that UK new‑car registrations rose about 11% year‑on‑year in June, with battery‑electric vehicles representing 30% of the market.

Currency Movement

The British pound recovered slightly, trading up 0.10% against the US dollar at $1.3365 by the close of trading.