FTSE 100 treads water while Germany’s Dax makes gains after election

London’s FTSE 100 was treading water on Monday while Germany’s top equity index held onto gains as investors reacted to the country’s conservatives winning the national election.

The UK’s blue-chip index dipped 0.39 points to close at 8,658.98.

Weapons-maker BAE Systems was among the day’s biggest risers amid the UK Government announcing a new package of sanctions against Russia over its war in Ukraine.

Losses for mining stocks, including Endeavor Mining, Antofagasta and Fresnillo, however, were helping drag the index lower on Monday.

In Frankfurt, the Dax moved 0.62% higher in a positive session for Germany’s top index after the results of its federal election were released on Sunday.

The head of the centre-right opposition, Friedrich Merz, won while far-right party AfD made the biggest gains to come in at second place.

Konstantin Oldenburger, a market analyst for CMC Markets, said: “This morning’s initial reaction from the Dax reflected investor relief over the fact that, following the Bundestag election results, there is only one viable coalition option involving two parties.

“However, the absence of follow-up purchases can likely be attributed to the understanding that the crucial negotiations between the Union parties and the SPD (Social Democratic Party) are yet to come.”

Over in Paris, a weaker session saw its Cac 40 index close 0.78% lower.

In New York, it was a mixed start to trading with the S&P 500 more or less flat, and Dow Jones up about 0.3% by the time European markets closed.

The pound was down 0.15% against the US dollar, at 1.263, and was flat against the euro at 1.206.

In company news, shares in Wood Group soared more than 40% after the engineering firm confirmed it had received a fresh takeover approach from Dubai-based buyer Sidara.

It marks the second approach after Sidara walked away from a deal last August, having put forward four takeover proposals – the latter valuing the firm at about ?1.6 billion.

Wood Group’s share price, which has fallen sharply in recent days, shot up 41.3% on Monday.

Elsewhere, National Grid said it had agreed to sell its US onshore renewables business in a deal valuing the division at about ?1.4 billion.

The FTSE 100-listed energy infrastructure group, which runs much of Britain’s electricity grid, said the sale was part of its strategy to focus on networks and streamline the business. Shares in National Grid moved 2% higher.

The biggest risers on the FTSE 100 were: BAE Systems, up 49.5p to 1,305p; Airtel Africa, up 2.6p to 140.6p; BT, up 2.2p to 152.8p; Auto Trader, up 10.2p to 782.6p; and Aviva, up 4.2p to 502.8p.

The biggest fallers on the FTSE 100 were: Entain, down 31p to 707p; Endeavor Mining, down 66p to 1,674p; Polar Capital Technology Trust, down 13p to 351p; Scottish Mortgage Investment Trust, down 34p to 1,074p; and Antofagasta, down 50.5p to 1,769.5p.