London's FTSE 100 rises as defensive plays outweigh slide in commodity-linked shares

The UK's FTSE 100 edged higher on Monday, as investors piled into ⁠defensive pharma and consumer staples stocks amid a global selloff in energy and metal shares.

The blue-chip FTSE 100 index was up 0.2% at 1037 GMT, rising for the third straight session, while the domestically focused mid-cap index ​FTSE 250 was down 0.3% at a more-than-one-week low. The index of precious metal miners fell 4.9%, hitting a ‍three-week low, with Endeavour Mining and Fresnillo among the top losers in the benchmark index, down nearly 5% each.

Other London-listed miners also fell, with giants Glencore and Rio Tinto down 2.4% and 1.1%, respectively, as the selloff spread to silver and industrial metals as ⁠well. The ‌rout began after U.S. President ⁠Donald Trump's nomination of Kevin Warsh as the next U.S. Federal Reserve chair on Friday set off a wave of unwinding of ‍leveraged bets.

Caution in markets pushed investors into defensive plays that typically outperform during economic downturns. Healthcare gained 1.3%, lifted by ​AstraZeneca's 1.4% rise, while the personal care index also advanced as Unilever climbed 2.2%, making both companies ⁠among the benchmark’s top boosts. Signs of geopolitical tensions easing between the U.S. and Iran also sparked a selloff in crude prices, sending energy stocks ⁠down 1.6%. Shell and BP fell 1.5% and 1.7%, respectively.

Focus this week will be on the Bank of England's policy meeting on Thursday where the central bank is likely to hold rates at 3.75% and ⁠is expected to offer little clarity on when further cuts might come as it waits for firmer inflation ⁠trends. The latest survey showed ‌British businesses are most likely to be planning to raise pay this year by between 3% and 3.49%, slightly more than some BoE policymakers are comfortable with ⁠as they seek to return inflation to target.