British Stocks Slide Amid Mining Decline and AI Selloff

British equities gave a muted opening on Monday, with industrial metal miners pulling the FTSE 100 down by 0.2%, as investors anticipate the Federal Reserve’s rate decision. The FTSE 250 lost 0.6%, impacted by popular low-cost Chinese AI models, while the pound's strength hit export-focused firms.

British equities began the week on a downbeat note, primarily weighed down by a slump in industrial metal miners, pushing the benchmark FTSE 100 down by 0.2%, its lowest in more than a week following a record high on Friday. Investors are on high alert ahead of the Federal Reserve's rate decision scheduled later in the week.

Information technology stocks were the biggest drag on the midcap FTSE 250, declining by 0.6%. This was largely attributed to the soaring popularity of a low-priced Chinese artificial intelligence model that led to a selloff in AI-related shares. The wider European index, STOXX 600, and Wall Street futures also recorded a 0.6% decrease.

The sterling continued its upward trajectory, having brushed a two-week high against the dollar last Friday, an event that generally hinders export-driven companies. The industrial metal miners sector suffered a two-week low, exacerbated by a 6% drop in Anglo American's shares following reports that BHP Group won't renew its bid for the company.

(With inputs from agencies.)