LONDON, July 1, 2026, 14:06 BST
- FTSE 100 (INDEXFTSE:UKX) closed down 0.63% at 10,431.11 while FTSE 250 (INDEXFTSE:MCX) climbed 0.33% to 23,088.27, leaving a 96-basis-point spread with midcaps ahead.
- CMC Markets (LON:CMCX) surged 33.19% as the company raised its profit outlook, giving a lift to the mid-cap index, which otherwise saw pressure from soft UK consumer names.
- Babcock (LON:BAB), Rolls-Royce (LON:RR) and BAE Systems (LON:BA) traded higher. Associated British Foods (LON:ABF), JD Sports (LON:JD) and BP (LON:BP) were down.
- UK manufacturing PMI slipped to 52.5 in June, down from 53.9 in May. Gilt yields moved higher as markets factored in increased odds of another Bank of England rate hike.
UK stocks split by size on Wednesday. The FTSE 100 finished 66.01 points lower at 10,431.11, near the session bottom of 10,429.17. The FTSE 250 put on 74.82 points to close at 23,088.27, shrugging off stronger gilt yields. Commodity exporters took the hit, with midcaps up on a sharp move in one trading-platform stock and a push in defence shares.
| Index | Level | Day move | Day range | Investor read |
|---|---|---|---|---|
| FTSE 100 (INDEXFTSE:UKX) | 10,431.11 | -0.63% | 10,429.17-10,508.25 | Oil, mining, and consumer stocks weighed on the index |
| FTSE 250 (INDEXFTSE:MCX) | 23,088.27 | +0.33% | 22,978.94-23,129.65 | Midcaps outperformed FTSE 100 by 96 basis points |
The split is key since it complicates the idea that the “UK market” is just moving lower. FTSE 100 had just closed out its sixth straight quarterly gain, rising in 11 of the last 12 months. FTSE 250 posted its biggest quarterly jump in five quarters, Reuters said. Wednesday’s session looked more like a shift in sectors and earnings than investors bailing out of UK stocks. Reuters
CMC Markets was the main factor behind the mid-cap index outpacing the blue-chip index. The trading platform lifted its net operating income forecast for the year ending March 2027 to at least 550 million pounds. That’s up from the June range of 460 million to 480 million pounds and higher than the company-compiled consensus of 385.5 million pounds. Hargreaves Lansdown data showed shares up 33.19%.
| Stock | Index | Day move | Sourced driver |
|---|---|---|---|
| CMC Markets (LON:CMCX) | FTSE 250 | +33.19% | Company lifted its FY 2027 net operating income target to at least 550 million pounds |
| Babcock (LON:BAB) | FTSE 100 | +4.10% | Defence sector held gains on word of a 15 billion pound UK defence increase |
| Rolls-Royce (LON:RR) | FTSE 100 | +1.59% | Defence and aerospace momentum continued |
| BAE Systems (LON:BA) | FTSE 100 | +1.25% | Defence stocks helped support the blue-chip list |
| Associated British Foods (LON:ABF) | FTSE 100 | -3.93% | Sugar unit flagged losses; Primark like-for-like sales slipped 2.2% |
| Greggs (LON:GRG) | FTSE 250 | -4.88% | Richard Hutton, CFO, is leaving |
| JD Sports (LON:JD) | FTSE 100 | -2.62% | Nike NYSE:NKE cautious on revenue hurts sentiment |
Defence helped the FTSE 100 hold up, with Reuters reporting aerospace and defence stocks built on recent gains after the UK announced an extra 15 billion pounds for defence. Babcock, BAE Systems, Rolls-Royce and Melrose Industries (LON:MRO) all traded higher at the start. Hargreaves Lansdown later showed Babcock still leading FTSE 100 gainers.
Commodity stocks went the other way. Reuters reported drops in mining shares, with Rio Tinto (LON:RIO) and Fresnillo (LON:FRES) weaker early on. Hargreaves Lansdown showed Rio Tinto down 1.81%, BP off 2.14%, and Shell (LON:SHEL) losing 1.72% later. Brent crude touched $71.62 a barrel before coming back to trade near $72.25, down about 1%, according to the Guardian.
AB Foods gave an update on the drag from energy costs and slow demand on its margins. The Primark parent reported sugar revenue down 4% for the third quarter. The group now guides to an adjusted operating loss of 25 million to 60 million pounds for sugar in 2025/26, and warns that losses will widen again in 2026/27. Primark revenue was up 3%, though like-for-like sales dropped 2.2%.
AB Foods chief executive George Weston said the company is seeing pressure in the U.S. cooking oil segment, not just in the UK. He told reporters that Mazola’s main customers in the U.S. are being squeezed financially, and some face issues from U.S. Immigration and Customs Enforcement. “We don’t think that that’s going to change into 2027,” Weston said. He also said foodservice sales for fried foods are down as GLP-1 weight loss drugs hit demand. Reuters
UK macro data didn’t give much support to cyclicals, with S&P Global’s final June manufacturing PMI dropping to 52.5 from 53.9 in May and under the flash print of 53.1. Output was at its highest since September 2024, but new orders slowed down. “Sustaining the upturn is becoming a bigger concern,” said Rob Dobson, director at S&P Global Market Intelligence. Reuters
Higher yields kept up the pressure on UK housing stocks. UK 10-year gilt yields rose up to 6 basis points to 4.818%, and the 30-year yield moved 6 bps higher to 5.539%, both at their highest marks since June 22, The Guardian said. Odds of a quarter-point rate hike from the Bank of England by year-end were at 85%. Barratt Redrow (LON:BTRW) shares lost 2.21%. Berkeley Group (LON:BKG) was off 1.49%.
Ashley Webb, Capital Economics senior UK economist, said flat Nationwide house prices pointed to mortgage-rate strain from the Iran war, but he still sees “house price growth to pick up again later this year.” The UK equity market’s rate-sensitive stocks didn’t trade like CMC Markets. The Guardian
