London, June 7, 2026, 18:02 (BST)
FTSE 100 stays close to record highs, FTSE 250 slips ahead of UK data
The FTSE 100 ended Friday at 10,368.05, just above flat, up 0.07%. The FTSE 250 dropped 1.04% to 23,060.74. Investors are watching for Friday’s UK growth numbers with the domestically focused FTSE 250 feeling more of the pressure.
Big UK stocks with overseas revenue are leaning on defensive plays, while smaller names like retailers, housebuilders and domestically exposed industrials are still reacting to Bank of England rate moves, gilt yields and pressure on UK households. The Office for National Statistics reports April GDP, the key measure of economic output, on June 12.
Rate worries cooled off late last week. The Bank of England said a survey of over 2,000 businesses found firms now see prices rising 4.0% in the next year, down from 4.4% in April, but still higher than February. Rob Wood at Pantheon Macroeconomics said policy makers might be reassured since “second-round effects” like wage and price bumps after an energy shock “seem muted for now.” Reuters
FTSE 100 outperformed global peers Friday, though both key UK indexes slipped for the week. Healthcare gained 2.1% and personal-care jumped 2%, leading London stocks. Miners focused on precious metals dropped 6%. Drugmakers and personal-care shares held up best.
Busy week coming up for UK data. Investors have the BRC retail sales monitor out late Monday, with the RICS house price balance due Wednesday. Thursday brings the 2029 gilt auction — gilts are UK government bonds. Then on Friday, a set of official numbers drops for GDP, trade, industrial output, manufacturing and construction.
UK house prices slipped for a third month, with Halifax reporting a 0.1% drop in May. Amanda Bryden, head of mortgages at Halifax, pointed to “uncertainty linked to developments in the Middle East” as weighing on prices. Borrowing costs remain high as inflation expectations push up rates, making it harder for buyers to afford homes. Reuters
Mid-cap stocks took a hit on deal news. Bodycote shares dropped after Apollo ended talks on its £1.52 billion takeover bid, erasing any deal premium for the FTSE 250 industrial. Andrew Simms from Berenberg said Apollo’s approach showed the market “undervalues the quality” of Bodycote’s businesses. Reuters
London showed less fallout from the tech retreat than rivals, but still felt some of the risk-off mood. The STOXX 600 ended Friday down 0.3%, shedding 0.5% for the week. The Nasdaq slumped as a solid U.S. jobs print raised bets that the Fed could keep policy tight.
Policy signals remain mixed. Earlier this month, Bank of England’s Megan Greene said “the case for hiking rates grows” if the Iran conflict drags on, warning that even with weaker company price expectations, fresh oil and shipping risks could shift the rate path. Reuters
The week may just as easily turn negative. Gulf markets dropped on Sunday after more U.S.-Iran tension. Any hit to oil supplies through the Strait of Hormuz would feed straight back to inflation, rate views and UK sectors tied to low borrowing costs. The FTSE 250 could lag again even if the FTSE 100’s global stocks don’t move much.
FTSE 100 defensive names in drugs, staples, and defence have done most of the work lately, but nothing looks simple for Monday’s open. Investors are still weighing Friday’s data, trying to figure out if last week’s inflation relief holds or if it’s just a brief break before more rate concerns hit.
