LONDON, July 6, 2026, 10:03 BST
- FTSE 100 is up 0.33% and FTSE 250 added 0.22% on delayed morning prints. AIM stocks are trading higher than both.
- easyJet surged after it backed Castlelake’s £5.5 billion bid, while ITV traded higher as it agreed to sell its media and entertainment business to Sky.
- UK construction stayed soft in June, with the PMI at 38.4, keeping a lid on domestic-demand trades.
London shares gained Monday, though the real action was in deal speculation more than the FTSE 100 itself. The London Stock Exchange ran its usual 0800-1630 BST hours, and the FTSE 100 (INDEXFTSE:UKX) moved up. Bids in the takeover space and aerospace stocks lifted the index, even as UK activity data stayed weak.
FTSE 100 rose 34.71 points, or 0.33%, to 10,713.74, according to LSEG data published on Investors Chronicle, with at least a 15-minute delay as of 0947 BST. The FTSE 250 (INDEXFTSE:MCX) added 51.81 points, or 0.22%, to 23,590.61 at the same time. The blue-chip index is still about 2% under its 52-week high, while the mid-cap index trails its own high by about 6.1%. That difference is one reason private buyers are still coming in for UK assets.
| London gauge | Latest level | Day move | One-year move / gap to 52-week high |
|---|---|---|---|
| FTSE 100 (INDEXFTSE:UKX) | 10,713.74 | +0.33% | Up 21.43% over the year, now 2.0% off the 52-week high |
| FTSE 250 (INDEXFTSE:MCX) | 23,590.61 | +0.22% | Up 9.43% year-on-year; sits 6.1% under its 52-week top |
| FTSE AIM 100 | 3,615.02 | +0.46% | Growth stocks led the early gainers |
| FTSE 350 | 5,817.62 | +0.31% | Large and mid-cap names lagged behind AIM |
The numbers lay it out for London: the top index trades near its highs, while mid-caps remain at a bigger discount. So public buyers stick to limited index risk, and strategics pay premiums for control.
| Stock or data point | Monday fact | Investor read-through |
|---|---|---|
| easyJet (LON:EZJ) | Shares gained 10.9% to £6.18 after the board said it would take Castlelake’s £6.90-a-share offer | There’s a control premium, but EU rules on ownership and approvals by shareholders still hang over the deal |
| ITV (LON:ITV) | Shares added 0.5% to 82 pence after Comcast’s NASDAQ:CMCSA Sky signed to buy ITV’s broadcast and streaming arm in a £1.6 billion deal | Break-up trade story, next up is UK ad-market and regulatory review |
| Ocado Group (LON:OCDO) | CEO Tim Steiner will stay into financial 2028; shares are down around 20% in six months | Some governance visibility, though partners and cash flow still questioned |
| UK construction PMI | June came in at 38.4, just above 38.2 prior, and stuck under the 50 mark | Domestic weakness continues to hold back builder and housing plays |
easyJet was in focus after saying it would take Castlelake’s higher £6.90 per share offer, giving the group a £5.5 billion valuation. The airline had already turned down four bids. The new bid price is close to 24% above easyJet’s Friday finish. JPMorgan flagged EU ownership requirements as a hitch and said there’s no guarantee shareholders will vote yes. Castlelake needs to make a formal bid by Aug. 3, or drop the effort under UK rules.
ITV put in a second control-price marker. Sky will buy ITV’s broadcast channels and streaming service for £1.6 billion, so ITV stays as an independent production firm. “A defining moment,” Sky CEO Dana Strong said. Analysts told Reuters the deal would give Sky and ITV more than 70% of the UK TV ad market—high enough regulators are likely to take a hard look. Reuters
Ocado skipped a bid premium. The company said CEO Steiner will stay in the top job until early 2028 and then shift to a founder position through 2029. The company put out the update after lower-than-hoped demand at Kroger (NYSE:KR) and Sobeys in North America, which have both shut robotic fulfilment sites.
FTSE 100 gains were led by industrial and aerospace stocks, not banks or miners. RELX (LON:REL) was up 2.3%, BAE Systems LON:BA climbed 2.0% and Babcock International (LON:BAB) rose 1.9%. GSK (LON:GSK), International Consolidated Airlines Group (LON:IAG) and Unilever (LON:ULVR) also pushed the index higher. Fresnillo (LON:FRES), Endeavour Mining (LON:EDV) and Associated British Foods (LON:ABF) lost ground.
Home economy is still lagging. S&P Global’s UK construction PMI in June nudged up to 38.4 from May’s 38.2, which was a six-year low. House building posted its biggest drop so far in 2026, civil engineering saw the sharpest fall since April 2020, and construction jobs declined for the 18th straight month. Tim Moore, economics director at S&P Global Market Intelligence, said a few firms mentioned “recent new contract awards” and were hoping for improvement. Reuters
Oil boosted global stocks, but London’s major energy names struggled. OPEC+ set new output targets, up 188,000 barrels per day starting in August. Brent crude dropped 1.4% to $71.10, the lowest level in about four months. Mohit Kumar at Jefferies said the slide in oil prices should lift growth sectors and countries that trailed in the last three months.
Castlelake faces an Aug. 3 deadline to put in a formal offer for easyJet or walk away from its London bid. ITV’s agreement throws up a fresh trial for regulators weighing how far to let UK market consolidation go, as public valuations keep helping buyers.
