London’s FTSE 100 slips but US rate cut optimism limits losses By Reuters

(Reuters) – London shares started the week on a weak note, weighed down by aerospace and defense shares, although investor optimism about a potential September interest rate cut in the United States capped losses.

The blue chip fell 0.2 percent on Monday after posting its best week since May in the previous session. The mid-cap FTSE 250 was flat as of 0710 GMT.

Aerospace and defense stocks fell 1.3 percent, tracking losses in European defense stocks following reports that the German federal government would reject new requests for military aid to Ukraine because of spending cuts.

Shares of Bae Systems fell 2 percent, while Rolls-Royce (OTC: ) and Chemring fell more than 1 percent each.

Heavy energy stocks fell 0.2 percent on lower crude prices, while banks fell 0.1 percent.

On the other hand, precious metal miners and industrials rose 0.7 percent each as gold prices traded near historic levels while gaining on waning fears of a U.S. recession and concerns about by Chinese demand. (GOL/) (MET/L)

Property and real estate investment trusts were marginally higher after property website Rightmove ( OTC: ) said British estate agents reported more buyer interest since the Bank of England’s interest rate cut.

Investors remained upbeat about a potential U.S. interest rate cut as last week’s data reflected a slowdown in inflation and eased fears of a slowdown, lifting sentiment after a sell-off in global stocks earlier this month.

All eyes will be on comments from US Federal Reserve Chairman Jerome Powell, scheduled to speak at the Jackson Hole event later this week.

A monthly PMI reading is due in the UK and US later this week, alongside minutes from the Fed’s latest policy meeting in an otherwise dataless week.

Among individual stocks, Plus500 ( LON: ) gained 4.1% to take after the online trading platform estimated its full-year results to be above the market’s view and also posted a 13% rise in new customers in the first half of the year.