London, June 30, 2026, 18:01 BST
- FTSE 100 (INDEXFTSE:UKX) rose 0.12% to 10,497.12, but closed in the bottom 10.3% of its intraday range.
- FTSE 250 (INDEXFTSE:MCX) slipped 0.01% to 23,013.45 and also finished near its session low.
- Banks gained 0.8% and were up 20% for the quarter; aerospace and defence rose 2.1% after a £15 billion UK defence funding pledge.
- UK GDP rose 0.6% in the first quarter, but real household disposable income per head fell 0.8%.
The FTSE 100 Index (INDEXFTSE:UKX) rose 12.90 points, or 0.12%, to 10,497.12 on Tuesday, but the close was only 13.26 points above the session low and 116.06 points below the high. The positive close hid a weak finish: the blue-chip index ended in the bottom 10.3% of its day range.
The FTSE 250 Index (INDEXFTSE:MCX), the cleaner read on domestic UK shares, fell 1.40 points, or 0.01%, to 23,013.45. It closed in the bottom 9.6% of its intraday range. That matters because the same late fade hit both large caps and mid-caps, even though the headline FTSE 100 print was higher.
| Index | Close | Day move | Day range | Close position in range |
|---|---|---|---|---|
| FTSE 100 (INDEXFTSE:UKX) | 10,497.12 | +12.90 / +0.12% | 10,483.86–10,613.18 | 10.3% above low |
| FTSE 250 (INDEXFTSE:MCX) | 23,013.45 | -1.40 / -0.01% | 22,994.54–23,191.69 | 9.6% above low |
The blue-chip index still booked a sixth straight quarterly gain. Reuters reported the FTSE 100 gained in 11 of the past 12 months, with March the only exception, while the FTSE 250 had its biggest quarterly rise in five quarters but a monthly loss.
Banks supplied part of the lift. Reuters said the FTSE bank index rose 0.8% on the day and was up 20% for the quarter. Lloyds Banking Group plc LON:LLOY gained 2.11%, while NatWest Group plc (LON:NWG) rose 1.65%.
Defence was the policy trade. The UK government committed an extra £15 billion in defence funding, according to finance minister Rachel Reeves, and Reuters said aerospace and defence stocks rose 2.1%. Babcock International Group plc (LON:BAB), Melrose Industries plc (LON:MRO), Rolls-Royce Holdings plc LON:RR and BAE Systems plc LON:BA were up between 2% and 3.3%.
| FTSE 100 gainers | Move | FTSE 100 fallers | Move |
|---|---|---|---|
| Polar Capital Technology Trust plc (LON:PCT) | +4.01% | Entain plc (LON:ENT) | -5.48% |
| Babcock International Group plc (LON:BAB) | +3.34% | Smith & Nephew plc (LON:SN) | -4.63% |
| Scottish Mortgage Investment Trust plc (LON:SMT) | +3.27% | Vodafone Group plc LON:VOD | -3.72% |
| Melrose Industries plc (LON:MRO) | +2.79% | BT Group plc (LON:BT.A) | -3.11% |
| St James’s Place plc (LON:STJ) | +2.58% | Burberry Group plc (LON:BRBY) | -3.01% |
Hargreaves Lansdown’s market-close table put technology trust Polar Capital at the top of the FTSE 100 risers, followed by Babcock and Scottish Mortgage. Entain, Smith & Nephew and Vodafone led the fallers.
Housebuilders were a drag. Reuters said the home construction index fell 1.6% after a consumer claim over alleged anti-competitive conduct, and Persimmon plc (LON:PSN) fell 2.96% in the FTSE 100 fallers table.
The macro data gave the market a mixed base. The Office for National Statistics confirmed first-quarter GDP growth of 0.6%, with services up 0.8%, construction up 0.4% and production up 0.2%. Real household disposable income per head fell 0.8%, and the household saving ratio fell to 8.9%.
Thomas Watts, MPS portfolio manager at Julius Baer, said the “composition of growth was more balanced than in recent quarters.” Matt Swannell, chief economic adviser to EY ITEM Club, was less upbeat on what follows, saying “tighter financial conditions and economic uncertainty will weigh on investment.” The Guardian
Lloyds’ June Business Barometer added a weaker domestic read: business confidence fell three points to 44%, below the 12-month average of 47%, while economic optimism dropped to 31%. Amanda Murphy, CEO of Lloyds Business and Commercial Banking, said international firms “are much more confident” than domestic firms. Manufacturing confidence fell 10 points to 33%, against a 12-month average of 46%. Lloydsbankinggroup
