London, June 19, 2026, 18:03 (BST)
- FTSE 100 ended down 36.43 points at 10,363.27, a drop of 0.35%.
- FTSE 250 slipped 0.56% to 23,200.73. BP and Shell logged gains, which helped check losses on the main index.
- Gilt yields moved higher after UK government borrowing figures came in above expectations. That follows the Bank of England’s decision a day earlier to leave its Bank Rate at 3.75%, with a 7-2 split.
FTSE 100 falls, posts worst week in six as miners and politics weigh
The FTSE 100 closed down on Friday, logging its steepest weekly loss in six weeks after declines in mining stocks and renewed political worries pulled the blue-chip index lower, despite gains for oil producer shares. The index dropped 1% this week. The FTSE 250 shed 0.5%.
US-Iran talks got canceled, sparking fresh worries over energy supply. Andy Burnham won the by-election, fueling talk he could move against Prime Minister Keir Starmer. Both events pushed investors to cut risk.
Gilts dropped, with the 10-year yield moving up to around 4.84%. The Office for National Statistics reported public sector borrowing at £23.3 billion in May. That’s £5.6 billion above the Office for Budget Responsibility’s forecast, stirring questions about the government’s fiscal capacity.
Mining stocks dragged the market. Anglo American and Rio Tinto dropped roughly 2.6% apiece. BP rose 2.8%, with Shell up 1.1% as oil prices advanced after a hit to diplomatic talks.
The interest-rate environment stayed tight. The Bank of England kept its Bank Rate at 3.75% on Thursday, though two out of nine policymakers pushed for a hike. “Conditions don’t seem in place for sustained inflationary pressure,” said Luke Bartholomew, deputy chief economist at Aberdeen, who thinks the Bank will steer clear of more tightening. Reuters
Mixed readings from Friday’s domestic data. Retail sales volumes climbed 1.2% in May, lifted by promotions and warmer weather, which pushed up online and department-store sales. That points to some consumer strength, but the borrowing figures had a sharper impact on market funding costs.
Dan Coatsworth, head of markets at AJ Bell, said the bond reaction pointed to worries that Starmer “won’t go quietly” and to the problems for US-Iran diplomacy. Neil Wilson, investor strategist at Saxo UK, called Burnham the “least market friendly option” in the political field. The Guardian
FTSE 100 held up as oil-related stocks drew buyers, while the FTSE 250 took a hit again from higher borrowing costs. The large-cap index saw support from firms tied to global energy markets, but the mid-cap benchmark lagged, reflecting worries over the cost of debt for UK-focused names. Traders continued to price in both supply risk abroad and tougher borrowing conditions for companies at home.
Markets may shift fast. New talks or a drop in oil would calm inflation worries, lifting rate-sensitive shares. But if trouble flares again near the Strait of Hormuz, or the Labour leadership contest drags on, there’s risk for the other side: costlier energy, higher gilt yields and more pain for UK names.
FTSE 100 stalls under its 52-week peak. The index ended Friday’s session below 10,934.94, with trading more influenced by energy prices, government, and bond yields than earnings.
