UK Stocks Dip Amid Economic Uncertainty and PMI Data Anticipation

UK shares experienced a decline on Monday following their worst day since August. Investors are keenly awaiting flash PMI data for further insights into the country's economic growth. The FTSE 100 and midcap index were both down 0.1%, following a difficult week influenced by central bank interest rate decisions.

UK shares experienced a decline on Monday following their worst day since August, as investors keenly await flash PMI data for further insights into the country's economic growth.

At 0720 GMT, the blue-chip FTSE 100 and the more domestically-focused midcap index were down 0.1%, each. Both indexes suffered their worst day in nearly seven weeks on Friday, following the Bank of England's decision to hold interest rates steady, despite the Federal Reserve's significant 50 basis point rate cut.

Investors are closely watching UK flash PMI data for the services and manufacturing sectors later in the day, looking for indicators of growth and price increases. Last week, Britain's consumer price inflation data revealed persistent price pressures in the services sector, a key focus for the BoE's monetary policy.

Precious metal miners saw a 0.8% rise as gold prices hit record highs, spurred by Fed rate cuts and increased demand for the safe-haven asset amidst geopolitical risks in the Middle East. However, the personal goods sector faced declines, with luxury goods maker Burberry seeing a 2.2% loss in shares, marking its second consecutive session in the red.

In corporate news, Rightmove shares jumped 3% after Australia's REA Group made a third offer to buy the UK property-listing firm for £6.1 billion ($8.12 billion). Conversely, AstraZeneca shares slipped 0.6% after the drugmaker announced that its experimental precision drug did not significantly improve overall survival for certain breast cancer patients in a late-stage trial.

(With inputs from agencies.)