LONDON, July 8, 2026, 19:01 (BST)
- FTSE 100 (INDEXFTSE:UKX) dropped 1.7% to 10,489.04. FTSE 250 (INDEXFTSE:MCX) lost 1.5%, logging its steepest fall since mid-March.
- BP LON:BP and Shell LON:SHEL ended higher with oil up, though over 80% of FTSE 100 stocks finished in the red.
- Two-year yields in the UK and Germany jumped 10 basis points. Markets now see 32 basis points of Bank of England hikes still on the table for this year.
- Jet2 (LON:JET2) outperformed on bookings, while Vistry (LON:VTY) dropped after flagging a first-half loss.
UK stocks fell Wednesday as oil’s rally stopped being an easy win for London. Brent prices lifted BP and Shell, but higher oil brought rate fears back. The FTSE 100 had energy names up, but most other shares fell.
| Gauge | Latest/close | Move | Market read |
|---|---|---|---|
| FTSE 100 (INDEXFTSE:UKX) | 10,489.04 | -1.66% | Gains in oil shares weren’t enough to hold off deeper selling. |
| FTSE 250 (INDEXFTSE:MCX) | 23,017.64 | -1.54% | Midcaps fell, with no support from oil stocks. |
| STOXX Europe 600 (INDEXSTOXX:SXXP) | 634.91 | -1.8% | Europe posted its worst session since March. |
| IBEX 35 (INDEXBME:IB) | — | -2.7% | Spanish stocks led the decline in European indexes. |
FTSE 100 lost ground Wednesday, showing the index hasn’t been a safe spot for investors. Still, it’s up 5.62% in 2024 and has gained 18.29% over the last 12 months, so there were profits on the table before the drop. The easy path for UK stocks in June now faces stiffer tests as earnings season arrives in July.
FTSE 250 almost matched the FTSE 100 drop, but with no help from energy stocks. This puts more heat on UK-focused names. Builders, banks, retailers and travel all get hit on the side that producers just pass on—costlier fuel, rising funding, softer demand.
“It’s a big wake-up call for markets,” said Aneeka Gupta, director of macroeconomic research at WisdomTree. She said the market had been looking for oil flows to pick up and for inflation expectations to cool. Brent was quoted near $78 a barrel after jumping 5%, Reuters reported. Traders also moved to price in further tightening from the Bank of England. Reuters
Brent crude futures jumped $4.91, or 6.6%, to settle at $79.07 a barrel after U.S. President Donald Trump said the interim deal to end the war with Iran was “over.” Before the war, about 20% of the world’s oil went through the Strait of Hormuz, Reuters said. Jorge Leon at Rystad Energy said these latest events “significantly weaken any confidence” in a lasting peace deal. Reuters
| Stock or sector | Move | Signal |
|---|---|---|
| BP LON:BP | +3.53% to £4.91 | Crude hedge move. Still 19.38% under the 52-week high. |
| Shell LON:SHEL | +2.3% | Shares up on gas and trading outlook. |
| Precious metals miners | -7.0% | Group dropped as gold and rates pressured miners. |
| Anglo American LON:AAL | -6.34% to £33.81 | Large-cap miners pulled down by metals slide. |
| Barclays (LON:BARC) | -3.68% to £4.97 | Banks followed risk-off move. |
Shell gave its reasons for the moves in energy stocks. On Tuesday, Shell raised its Q2 integrated gas output target to 610,000-650,000 barrels of oil equivalent a day, higher than the earlier range of 580,000-640,000. The company also increased its LNG liquefaction volume outlook and said trading in integrated gas would be much higher than the first quarter.
BP traded on the same crude move. The market priced in higher oil, but the shares stayed well below March. That’s the difference in London for now: energy got bought as a hedge on earnings, not as a bet on UK stocks overall.
UK credit and consumer names lagged. Vistry flagged a £30 million pre-tax loss for the first half, put net debt at £470 million as of June 30, and stuck to its £200 million full-year adjusted profit goal. RBC Europe’s Anthony Codling called the needed second-half bounce “a tall order.” Reuters
Jet2 was the cleaner contrarian play. The company said summer passengers booked so far increased 7.1%, with summer capacity up 7.7%. 90% of jet fuel for the year is hedged at an average of $743 a metric ton. CEO Steve Heapy said demand got stronger after tensions in the Gulf eased, and this new surge in oil puts more weight on those hedges.
IG Group LON:IGG dropped 2.2% after it laid out plans for a new Jersey holding company. Reuters reported a jump in first-half revenue, up 18%, and active customers gaining around 66%. Traders focused on the holding company move, pulling back before weighing the growth numbers.
Thursday’s setup looks tight. If Brent sticks around $80 and two-year yields keep near one-month highs, the FTSE 100 might keep some cover via BP and Shell, though losses in midcaps, builders, banks and miners will be tougher to hide.
