London, June 23, 2026, 18:06 BST
FTSE 250 falls to lowest since June 11 as London stocks slip
London’s FTSE 250 lost 270.54 points, or 1.2%, to finish at 22,926.47 on Tuesday, the lowest close since June 11. The FTSE 100 edged down 9.00 points, or 0.1%, to 10,428.85. Broad selling and worries about higher rates pulled risk appetite lower.
The gap between the two indexes pushed the focus onto Britain’s domestic outlook. The flash UK services PMI dropped to 48.7 in June, down from 49.3, its lowest since January 2023. Any figure below 50 points to contracting activity.
Politics came into focus after Prime Minister Keir Starmer said Monday he would step down. Greater Manchester mayor Andy Burnham is seen as leading the race to replace him. Investors remain uncertain on fiscal and public spending plans. “The prospect of a successor taking office within a month at least minimises the uncertainty for investors,” Chris Beauchamp, chief market analyst at IG, said. Reuters
Nasdaq and S&P 500 both dropped to their lowest in over a week as a steep chip selloff hit U.S. stocks. Traders raised bets on another 25-basis-point Fed rate hike by December. A basis point equals one-hundredth of a percentage point. The pressure came from global markets.
London mining stocks dropped hard, weighing on the index. Precious and industrial metals both slid about 4%. Antofagasta lost 5.5%. Fresnillo fell 5.2% as gold, silver and copper prices slipped. Sectors like pharma, consumer staples and drinks — often seen as safer during shaky times — added between 1.7% and 2.2%.
UK business activity fell, with new business and jobs both down. The composite PMI for services and manufacturing slipped to 49.4. Firms kept cutting staff at what Chris Williamson at S&P Global Market Intelligence called “a worryingly high rate,” blaming higher costs and low expectations. Reuters
UK government bonds caught a bid. The 10-year gilt yield slipped to roughly 4.76% after disappointing growth data cooled bets on a quick hike from the Bank of England. Gilt yields fall as prices rise. Bank of England’s Alan Taylor said “an extended hold at this level” made sense until the economic picture improved. Trading Economics
Bunzl jumped 5.6% to £26.02 after the business-supplies distributor lifted its 2026 revenue forecast. The company said first-half revenue should rise about 4% at constant exchange rates, with underlying growth near 3%. CEO Frank van Zanten pointed to “continued underlying growth and robust profitability.” MarketWatch
Telecom Plus dropped 25.7% after it announced a five-year plan that needs around £55 million in yearly investment, which will hit profit. The Utility Warehouse parent is guiding for adjusted pretax profit of £80 million to £90 million in the first year of the plan, down from the £132.2 million it just reported.
Still, things could get worse if there’s another energy shock, the Fed goes tighter, or the new UK government spends heavily and drives borrowing up. If the Middle East settles down, inflation drops, or UK policy steadies, that trade might go the other way. Rate-sensitive mid-caps could see the biggest swing.
Micron Technology is set to report earnings Wednesday, June 24, and investors are watching for signals on AI infrastructure demand. The Federal Reserve’s preferred US inflation gauge lands Thursday, June 25. In London, focus is still on the leadership race and how the coming government handles the budget.
