London, July 1, 2026, 18:04 BST
- The London session finished by the dateline. FTSE 100 (INDEXFTSE:UKX) slipped 0.18% to 10,478.34, while FTSE 250 (INDEXFTSE:MCX) added 1.38% at 23,330.07.
- The 1.56 point spread between mid-caps and blue chips was the key move on the day—UK-focused names outperformed global earners.
- FTSE 100 slipped as healthcare, oil and food retail names weighed, while defence, precious metals and some financials showed some strength.
- Bank of England Governor Andrew Bailey told reporters that rate cuts are “off the table at the moment,” damping hopes for any move soon. Reuters
FTSE 250 outperformed the FTSE 100 on Wednesday as mid-caps climbed 1.38% to their highest in a week. The FTSE 100 slipped 0.18%, weighed down by declines in healthcare and oil heavyweights. Regular London trading hours were 0800 to 1630 local, as usual.
| Index | Close | Day move | Day high | Day low |
|---|---|---|---|---|
| FTSE 100 (INDEXFTSE:UKX) | 10,478.34 | down 18.78, or 0.18% | 10,508.25 | 10,429.17 |
| FTSE 250 (INDEXFTSE:MCX) | 23,330.07 | up 316.62, or 1.38% | 23,330.07 | 22,978.94 |
| Mid-cap spread over FTSE 100 | — | up 1.56 percentage points | — | — |
The spread suggested the trade was cleaner than the main index let on. Dollar earners in the FTSE 100 with heavy exports got hit by declines in oil and pharma. Domestic and specialist mid-caps saw buyers step in, though the Bank of England offered no signal on rate cuts.
Healthcare stocks slid 1.6%, according to Reuters. AstraZeneca (LON:AZN) slipped 1.7% and GSK (LON:GSK) shed 2.5%. Shell (LON:SHEL) and BP (LON:BP) both lost over 2% after oil prices moved lower. Precious metal miners jumped 3.3%.
| Pressure point | Stock or sector | Move |
|---|---|---|
| HL board’s top FTSE 100 decliner | Associated British Foods (LON:ABF) | -3.15% |
| Utility deal seen as risk | National Grid (LON:NG) | -2.96% |
| Pharma weighed down | GSK (LON:GSK) | -2.57% |
| Oil stocks under pressure | BP (LON:BP) | -2.46% |
| Oil stocks under pressure | Shell (LON:SHEL) | -2.06% |
| Bid action in defence | Babcock International (LON:BAB) | +5.17% |
| Bid action in defence | BAE Systems (LON:BA) | +1.95% |
Defence stocks held steady after Prime Minister Keir Starmer said the government will add 15 billion pounds to defence spending, Reuters reported. Shares of Babcock, BAE Systems, and Rolls-Royce Holdings (LON:RR) gained between 1.1% and 5.2%.
Associated British Foods (LON:ABF) gave the biggest profit warning on the FTSE 100 on Wednesday. The company reported Primark sales up 3% for the third quarter, but like-for-like sales slipped 2.2%. ABF now sees its sugar division swinging to an adjusted operating loss of between 25 million and 60 million pounds for 2026, citing “significantly higher” gas costs, which it blamed on the Middle East conflict. ABF Corporate
Panmure Liberum analysts called a lasting recovery in Primark like-for-like sales “the key catalyst” for AB Foods shares, but warned that the turnaround may take more time than the market expects. AB Foods lost 3.7% according to Reuters, ending the day down 3.15% on the Hargreaves Lansdown board. Reuters
National Grid (LON:NG) slipped after it said it would spend $1.75 billion to pick up a 35% stake in Joulent, a U.S. energy firm targeting data-centre power projects. The first initiative is a 2.67-gigawatt site in West Texas with Chevron NYSE:CVX, set to provide power to a Microsoft NASDAQ:MSFT-run data-centre campus with a 20-year contract.
J.P. Morgan analysts said they see the deal bringing higher risk, but likely topping the 9-10% return on equity from regulated networks. That matters since National Grid is already working through a capital plan of at least 70 billion pounds through fiscal 2031.
CMC Markets (LON:CMCX) jumped 41.92% on Hargreaves Lansdown’s FTSE 250 board. Reuters said the trading platform lifted its annual profit forecast after seeing higher demand from B2B partnerships. The mid-cap rally got a boost from moves like this.
UK factory PMI fell to 52.5 in June from 53.9 in May, missing the flash 53.1 reading. S&P Global’s output index was at its highest since September 2024. But S&P Global Market Intelligence’s Rob Dobson said, “Sustaining the upturn is becoming a bigger concern.” Reuters
Bailey put a lid on the rate-cut talk. The Bank of England governor said there had been hopes for cuts this year, but those are “off the table at the moment.” Reuters reported most economists it surveyed think the BoE will hold rates flat this year, though markets still priced in about a 75% chance of one more quarter-point hike. Reuters
