FTSE 100 dips as precious metal miners weigh on market

London's benchmark FTSE 100 index traded slightly lower on Monday as weakness in precious metal mining stocks outweighed gains in financial and media shares.

Investors also assessed a series of merger and acquisition announcements that drove stock-specific movements across the market.

The blue-chip FTSE 100 index fell 0.1% to 10,663.68 points by 1037 GMT.

The mid-cap FTSE 250 index also edged lower, slipping 0.06%.

Mining stocks drag the market lower

Precious metal mining companies led the declines, with the sector falling 0.9%.

The losses followed a pullback in gold prices after the precious metal retreated from a two-week high.

Gold prices came under pressure as the US dollar strengthened ahead of the release of the US Federal Reserve's latest policy meeting minutes, which are scheduled later this week.

The stronger dollar weighed on demand for gold, putting pressure on mining stocks listed in London.

Deal activity lifts travel and media shares

Corporate deal announcements provided support to several sectors despite the broader market weakness.

Travel and leisure stocks rose 0.7%, led by budget airline easyJet, whose shares surged 9.9%.

The airline gained after agreeing in principle to a sweetened takeover offer from US investment firm Castlelake.

The proposal values the carrier at up to 5.5 billion pounds ($7.34 billion).

Media stocks also outperformed, rising 0.9%.

Advertising company WPP climbed 3.9%, while broadcaster ITV added 1.6% after agreeing to sell its media and entertainment division to Comcast-owned Sky for 1.6 billion pounds ($2.13 billion).

Geopolitical and policy developments remain in focus

Investors also monitored developments in the Middle East.

However, uninterrupted shipping through the Strait of Hormuz and expectations of increased oil supply contributed to lower oil prices during the session.

Meanwhile, attention also remained on the Bank of England.

Banks said potential changes to rules affecting Britain's government bond market could provide support to gilts and reduce the government's annual borrowing costs by more than 1 billion pounds ($1.3 billion).

At the same time, the report noted that some former regulators cautioned that such rule changes could increase financial risks.

Ocado shares decline on CEO succession timeline

Among individual stocks, online grocery technology company Ocado fell 5.6%.

The company announced that Chief Executive Officer Tim Steiner will remain in the role until the beginning of the 2028 financial year.

Ocado said it aims to have a successor in place by then.

The announcement weighed on the company's shares, making Ocado one of the session's notable decliners.

Overall, London's equity market remained subdued as investors balanced the impact of falling commodity prices against a steady flow of corporate transactions.

Market participants also continued to watch upcoming central bank communications and geopolitical developments for further direction.