What happened to UK markets?
The FTSE 100 closed broadly flat on 22 June at around 10,358–10,439 points. The index’s resilience reflects its structure: the majority of its constituent companies earn revenue internationally — in energy, mining, pharmaceuticals and global finance — making it less sensitive to domestic political noise.
The story was different for the FTSE 250, which fell 0.5–0.7% on the day (Yahoo Finance, Jun 2026). That index tracks more domestically focused UK businesses — housebuilders, retailers, financial services — which are more exposed to UK interest rates, consumer confidence and government spending decisions.
Sterling weakened modestly to around $1.319–1.325 against the dollar, though it had already shed approximately 3% since February 2026 as leadership speculation intensified (BBNTimes, Jun 2026). UK 10-year gilt yields held broadly steady at around 4.85%, with Capital Economics calling the calm reaction “consistent with the view that Starmer’s resignation was widely expected”.
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