FTSE 100 down 0.2, FTSE 250 flat
Aerospace and defence stocks lead losses
Plus500 sees annual results above market view, shares jump

Aug 19 Reuters London stocks kickstarted the week on a lacklustre tone, weighed down by aerospace and defence shares, although investor optimism over a potential September rate cut in the United States limited losses.

The bluechip FTSE 100 index was down 0.2 on Monday, after logging its best week since May in the previous session. The midcap FTSE 250 was flat, as of 0710 GMT.

Aerospace and defence stocks inched 1.3 lower, tracking losses in European defence stocks following reports the German federal government would reject new military aid requests for Ukraine due to spending cuts.

Shares of Bae Systems fell 2 while RollsRoyce and Chemring were down more than 1 each.

Heavyweight energy shares inched down 0.2 on lower crude prices, while banks dipped 0.1.

On the flip side, precious and industrial metal miners inched 0.7 higher each, as gold prices traded near historic levels while copper gained on waning fears of U.S. recession and Chinese demand concerns.

Real estate and real estate investment trusts were marginally higher after property website Rightmove said British estate agents reported higher buyer interest since the Bank of England39;s interest rate cut.

Investors remained optimistic over a potential U.S. rate cut as data last week reflected slowing inflation and allayed slowdown fears, uplifting sentiment after a global…