FTSE 100 closes lower amid pause in London trading rally

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The FTSE 100 stepped back from its recent record-breaking spell on Monday, finishing in the red following a broadly cautious trading session.

The index opened slightly higher but dipped as traders saw an opportunity to sell stocks and take profit after hitting a fresh all-time high at the end of last week.

London’s top index finished 18.77 points, or 0.22%, lower to end the day at 8,446.46.

AJ Bell investment director Russ Mould said: “The FTSE 100 was probably due a pause after a breathless period which has seen it mark record after record – and Monday saw the index take a seat.”

Elsewhere in Europe, the picture was broadly similar across the other major indexes, with weaker commodity prices and below-par Chinese economic data from the weekend acting as drags.

The German Dax index was down 0.18% at the close and the Cac 40 in France ended down 0.12%.

In the US, the main markets were higher on the opening bell as analysts look ahead to Wednesday’s key consumer price index inflation data, amid hopes it will provide more clarity over the US interest rate outlook.

Meanwhile, the pound was up 0.29% at 1.256 US dollars and was 0.1% higher at 1.163 euros at market close in London.

In company news, mining giant Anglo American saw shares edge lower after it rejected a second takeover tilt by rival BHP.

The Australian mining and metals firm put forwards a deal worth around £34 billion for Anglo American, after a previous £31 million move was rebuffed last month.

But it was “disappointed” after the latest deal was also rejected. Anglo American shares lifted after initial reports of the bid but dipped by 2.4% to 2,707p after the likelihood of a takeover dwindled.

Shares in Diploma made gains on Monday after the technical products firm, which sells items such as gaskets, increased its annual guidance.

Diploma told investors it expects turnover to increase by around 16% for the year, upgrading its previous forecast of 11%, with profit margin also set to improve.

Shares in the group rose by 4.05% to 4,060p as a result.

Elsewhere, the Mission Group saw shares lift after the digital marketing firm received a takeover approach from rival firm Brave Bison.

The company rejected the £27 million offer- worth around 29p per share – but saw shares rise by 5.73% to 24p amid hopes Brave Bison could come back with a higher bid.

Meanwhile, Brave Bison’s stock was flat at 2.5p at the close of trading.

The price of oil swung higher again amid hopes for rate cuts in the US and optimism around potential energy demand in Asia.

A barrel of Brent crude oil was up by 0.6% to 83.27 US dollars as markets were closing in London.

The biggest risers on the FTSE 100 were Diploma, up 158p to 4,060p, BT, up 3.55p to 108.95p, IAG, up 5.25p to 186.45p, 3i Group, up 68p to 2,919p, and Kingfisher, up 3.7p to 265.3p.

The biggest fallers on the FTSE 100 were BAE Systems, down 45p to 1,349p, Anglo American, down 66.5p to 2,707p, Phoenix Group, down 12p to 508.5p, Admiral Group, down 53p to 2,697p, and Spirax-Sarco, down 175p to 9,175p.