LONDON, July 2, 2026, 18:01 BST
- FTSE 100 (INDEXFTSE:UKX) closed up 1.7% at 10,652.9, a level last seen in late April. FTSE 250 (INDEXFTSE:MCX) added 0.4%.
- The FTSE 100 outperformed the FTSE 250 by around 1.3 points, with gains in healthcare, defence and staples leading large caps.
- AstraZeneca (LON:AZN) climbed 4.9% after it announced a China kidney-drug deal that could be worth up to $1.77 billion. Shares of Babcock (LON:BAB) and BAE Systems (LON:BA) added more than 5%.
- Sterling hit its best level in a year versus the euro, so the FTSE rally wasn’t driven by pound weakness.
Trading on the London Stock Exchange had wrapped up before the dateline. Regular hours are 0800 to 1630 BST.
FTSE 100 jumped 1.7% to 10,652.9 on Thursday, a level not seen since late April. The FTSE 250 lagged, edging up 0.4% to a two-week high. The 1.3-point spread showed the move was about the big names, not a broad vote on domestic growth.
Hargreaves Lansdown’s delayed feed put the FTSE 100 near its day’s peak at the close. The blue-chip index ended 42 points shy of its high and 216 points ahead of the session low.
| Index | Close | Day move | Day high | Day low | Close vs day range |
|---|---|---|---|---|---|
| FTSE 100 | 10,652.87 | up 174.53, or 1.67% | 10,694.94 | 10,436.76 | closed 84% of the way off the session low |
| FTSE 250 | 23,417.58 | rose 87.51, up 0.38% | 23,469.71 | 23,164.08 | ended at 83% of day’s high-low spread |
The split is important because the FTSE 100 rarely tracks UK demand well. Thursday’s rise was down to international earners, drugmakers, defence stocks and staples. The UK read was soft: business confidence dropped to its lowest level since late 2022, the Institute of Chartered Accountants in England and Wales said. Suren Thiru, chief economist at the ICAEW, said the UK faces “a difficult second half of the year.” Reuters
Softer U.S. jobs data pushed rates down. Nonfarm payrolls added 57,000 in June, missing the 110,000 expected in a Reuters poll. The odds of a Fed rate hike this month dropped below 20% after the numbers. Christopher Rupkey, chief economist at FWDBONDS, said Fed officials “won’t like this employment report.” Reuters
Defence, healthcare and consumer stocks led the FTSE 100. Babcock International Group (LON:BAB) jumped 5.54%, BAE Systems (LON:BA) was up 5.45% and AstraZeneca (LON:AZN) added 4.94%. At the bottom, Polar Capital Technology Trust (LON:PCT) slid 3.55%.
| FTSE 100 mover | Price | Day move |
|---|---|---|
| Babcock International Group (LON:BAB) | 1,056.50p | up 5.54% |
| BAE Systems (LON:BA) | 1,982.50p | up 5.45% |
| AstraZeneca (LON:AZN) | 14,538.00p | up 4.94% |
| Melrose Industries (LON:MRO) | 498.70p | up 4.92% |
| St James’s Place (LON:STJ) | 1,276.50p | up 4.08% |
| Polar Capital Technology Trust (LON:PCT) | 679.00p | down 3.55% |
| Entain (LON:ENT) | 540.00p | down 2.14% |
| Computacenter (LON:CCC) | 4,328.00p | down 1.95% |
AstraZeneca grabbed the spotlight among large caps after announcing a deal with CSPC Pharmaceutical Group (HKG:1093) that could reach $1.77 billion. The two will work together on experimental kidney disease drugs. CSPC gets $30 million up front, with potential development and sales payments of up to about $1.74 billion.
Sterling pushed higher, climbing to $1.335, its best level in two weeks. The euro dropped to 85.47 pence, the weakest since June 2025. Chris Turner, ING’s head of global markets, said the pound may have moved on softer euro-zone inflation and as traders cut short positions.
Consumer and staples shares helped the move. Tesco (LON:TSCO) was up 3.11%, Coca-Cola HBC (LON:CCH) gained 3.67%, Diageo (LON:DGE) jumped 3.64%, and J Sainsbury (LON:SBRY) rose 2.00%. Reuters reported the FTSE 350 healthcare sub-index climbed 4.4%. Precious-metal miners also moved up 3.3% as gold gained over 2% on a weaker dollar.
Currys (LON:CURY) dropped after the company said a global memory-chip shortage could push up prices for phones, laptops and other electronics later this year. CEO Alex Baldock said more chips are going to AI and data centers, so there’s “less left over” for phones and laptops. Currys posted an 18% jump in adjusted pretax profit to 191 million pounds for the year to May 2. Reuters
Business data pointed to some caution at home. The ICAEW survey found input prices up 4.1% in the three months to June, the quickest since July-September 2024. Late-payment worries hit 24% of firms, a five-year high. More than half mentioned labour costs, while 35% pointed to energy prices.
