23rd Jun 2026 16:59
(Alliance News) - The FTSE 100 edged lower on Tuesday held back by weak miners, while fresh US tech falls and soft UK economic data added to the muted mood.
The FTSE 100 closed down 9.00 points, 0.1%, at 10,428.85. The FTSE 250 ended down 270.54 points, 1.2%, at 22,926.47, while the AIM All-Share fell 11.68 points, 1.5%, to 782.59.
The Cboe UK 100 ended up 0.1% at 1,038.20, the Cboe UK 250 was down 0.9% at 19,641.93, and the Cboe Small Companies was down 1.2% at 18,067.46.
After a weak start to proceedings, London's blue chips made headway to briefly trade in the green in afternoon trade, before fading into the close.
The modest falls came as figures showing that private sector activity contracted in the UK for a second consecutive month in June.
The S&P Global flash UK composite output index fell to 49.4 points from 49.7 in May, missing the FXStreet-cited consensus forecast of 50.6 points.
The downturn was driven by the services sector, where the business activity index fell to 48.7 points from 49.3, its lowest level in 41 months and below the FXStreet-cited consensus of 50.0.
Beneath the drop in the services survey result, the details showed a sharp deterioration in new orders along with a further deterioration in employment intentions, analysts at RBC Capital Markets noted.
But RBC said that as much of the responses to the survey will have been collected before the signing of the pact between the US and Iran, this points to a potential improvement in the final survey result.
The pound traded at USD1.3198 on Tuesday afternoon, lower from USD1.3254 on Monday. Against the euro, sterling firmed to EUR1.1595 from EUR1.1587 on Monday.
In New York, the Dow Jones Industrial Average was down 0.2%, the S&P 500 was 1.4% lower and the Nasdaq Composite fell 2.0%, after declining 1.3% on Monday.
A 16% plunge in Elon Musk's rocket and AI group SpaceX rattled investor confidence on Monday, with the stock heading back towards its initial public offer price. On Tuesday, the stock traded 3.1% to the good.
Stephen Innes at SPI Asset Management said the market's immediate concern is "no longer just AI demand. It is whether the investment cycle is beginning to outrun the economics needed to justify it."
On Tuesday, Micron Technology plunged 11%, with Advanced Micro Devices down 5.9% and Nvidia 3.8% lower.
"Time will tell if this is let another 'buy the dip' opportunity, or a harbinger of worse things to come," said David Morrison at Trade Nation.
Micron Technology reports earnings on Wednesday and SPI's Innes said the results are now more than a company event.
"They are a referendum on whether the AI capex story still has sufficient earnings runway beneath it."
The tech weakness spread to Asia, with the Nikkei 3.6% lower. SoftBank fell 10%, and Tokyo Electron dipped 6.2%. In South Korea, chip giants SK Hynix dipped 12%, as did Samsung.
In London, tech investors Scottish Mortgage Investment Trust and Polar Capital Technology Trust both fell 3.3%.
The euro traded lower against the greenback, at USD1.1382 on Tuesday against USD1.1440 on Monday. Against the yen, the dollar was trading at JPY161.54, up from JPY161.41, on Monday.
In European equity markets on Tuesday, the CAC 40 in Paris ended down 0.7%, while the DAX 40 in Frankfurt fell 1.0%.
In Europe, the private sector remained in contraction territory in June, although the pace of decline eased.
The flash Hamburg Commercial Bank eurozone composite purchasing managers' index rose to 49.5 points from 48.5 in May. The FXStreet-cited consensus had pencilled in a 49.1 point reading.
The improvement was driven by the services sector, where the business activity index increased to 48.9 points from 47.7, a three-month high and above FXStreet-cited expectations of 48.1. Manufacturing activity remained more resilient, although momentum softened slightly. The manufacturing PMI fell to 51.3 points in June from 51.6 in May, also above the FXStreet-cited consensus of 51.2.
"The eurozone economy is showing enough resilience to just about stay out of recession," said Chris Williamson, chief business economist at S&P Global Market Intelligence.
The US 10-year Treasury yield traded at 4.49% on Tuesday, lower than 4.51% on Monday. The US 30-year Treasury yield traded at 4.93%, trimmed from 4.95% on Monday.
Oil prices edged lower, adding to recent falls as more tankers return to the Strait of Hormuz following a US-Iran deal aimed at ending the Middle East war.
A temporary suspension of US sanctions against Iran during their negotiations also raised hopes that more oil would be hitting the market soon.
Brent crude for August delivery traded lower at USD77.10 a barrel on Tuesday, down from USD77.38 on Monday.
Gold traded at USD4,134.67 an ounce on Tuesday, down from USD4,184.04 on Monday.
Weak metals prices prevented further gains in London with Antofagasta, Anglo American and Glencore down 5.5%, 5.0% and 4.2% respectively. Gold miners Fresnillo and Endeavour Mining were also lower, down 5.2% and 3.2%.
Leading the risers, Bunzl up 5.6%, as it raised its 2026 revenue guidance after stronger-than-expected first-half trading, driven by inflation-linked pricing, improving volumes in North America and acquisitions.
The London-based distribution and outsourcing company now expects "modest underlying growth" in full-year revenue compared to "some underlying revenue growth" previously.
Analysts at Stifel said the statement was "encouraging" after a period of subdued volume demand and issues faced in North America.
"The upgrade to expectations is further evidence Bunzl is returning to its resilient, consistent compounder story," the broker said.
Elsewhere, Ramsdens soared 31% after it accepted a GBP206 million bid from Fort Worth, Texas-based FirstCash Holdings.
FirstCash is an international pawnbroking operator with over 3,300 locations in the US, Latin America and the UK. Its stock trades on the US Nasdaq market with a market value just over USD10 billion.
It entered the UK market through the GBP297 million acquisition of H&T Group in 2025.
Ramsdens said the bid offers a "clear and certain route to monetisation at an attractive valuation."
The biggest risers on the FTSE 100 were Bunzl, up 138.00p at 2,602.00p, British American Tobacco, up 139.00p at 4,585.00p, Diageo, up 34.50p at 1,551.50p, AstraZeneca, up 300.00p at 13,590.00p and BT Group, up 4.35p at 196.95p.
The biggest fallers on the FTSE 100 were Antofagasta, down 216.00p at 3,740.00p, Fresnillo, down 155.00p at 2,853.00p, Anglo American, down 195.00p at 3,710.00p, Glencore, down 23.60p at 535.30p and Rio Tinto down, 249.00p at 7,264.00p.
Wednesday's global economic calendar has the Ifo business climate report in Germany and US new homes sales figures.
Wednesday's local corporate calendar has full year results from housebuilder Berkeley Group.
By Jeremy Cutler, Alliance News reporter
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Copyright 2026 Alliance News Ltd. All Rights Reserved.
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