23 June 2026
Last week, Bank of England Governor Andrew Bailey defended the recent gilt sales programme, arguing that it remains broadly neutral for everyday taxpayers. While the Iran war threatens widespread price increases, the Monetary Policy Committee chose to hold interest rates. Soaring energy costs have fuelled worries about rapid deindustrialisation risks, which currently offshore roughly 25% of domestic manufacturing. Consequently, officials are likely to maintain a cautious holding stance as economic momentum steadies, preferring to monitor inflation, which is nearing 2.8%, rather than reacting solely to temporary energy spikes. Meanwhile, domestic retail sales broke a negative spell, securing growth for the first time since April, from warm weather retail demand.
Elsewhere, in equities, the FTSE 100 index finished the week relatively flat while UK government bonds rallied sharply as steady domestic inflation metrics triggered yield declines. Government sector borrowing reached a staggering monthly high of £23.3 billion in May as Treasury officials managed record interest costs. Markets now anticipate stricter national fiscal discipline from political leaders during the year. Additionally, internal analysts detailed their findings of estimating damages from Brexit upon British gross domestic product, mostly reflecting a combination of earlier uncertainty, higher trade costs, and barriers to a more diverse European base, at the expense of domestic growth. Finally, on Monday, Prime Minister Kier Starmer announced his resignation, with Andy Burnham heavily tipped to replace him, this news had no material impact on the markets.
Across the Atlantic, macroeconomic data heavily impacted market sentiment as May retail sales arrived stronger than forecast, reinforcing consumer resilience, while monthly housing starts plummeted by over 15%, marking their slowest pace since May 2020. In equities, the S&P 500 index resumed its recent winning streak, while the Nasdaq Composite index increased, logging consecutive weekly advances. Technology stocks lifted the market periodically, driven by strong momentum in artificial intelligence and semiconductor companies following upbeat corporate earnings guidance. United States Treasury prices weakened with notable curve flattening following hawkish Federal Reserve takeaways from the Federal Open Market Committee that prompted markets to expect future rate hikes.
Meanwhile, the US Dollar strengthened as gold prices rose. Geopolitical developments remained central to sentiment as diplomatic negotiations over the Iran conflict progressed, bringing renewed hopes for a signed memorandum of understanding. Despite easing escalations and diplomatic steps, the clearer path towards a resolution which reopens the Strait of Hormuz, has significantly calmed energy markets. This optimism pushed West Texas Intermediate crude oil down noticeably, settling lower for the week, as market traders priced in a normalisation of oil exports and a decrease in regional risk premiums.
Elsewhere, UK house prices recorded a modest downturn, with the property portal Rightmove reporting a monthly fall of 0.6%, as early heatwave distractions dented momentum. However, weak consumer confidence, keeping household incomes squeezed, is further increasing the pressure.
Barratt Redrow, which operates as Britain's largest residential housebuilder and property development company, saw its shares rise 4.15% last week. This positive movement in the share price was driven by fresh corporate news, notably the announcement appointing former Britvic finance chief Rebecca Napier as the new Chief Financial Officer. This favourable development, paired with steady confidence in her extensive capital markets experience and ability to guide the ongoing integration following the recent merger, successfully lifted the stock's valuation. The upward trend reflects sustained investor trust in the company's long-term growth strategy after an active week on the corporate news front.
Standard Chartered, which operates as a leading multinational banking and financial services company, saw its shares rise 3.76% last week. They continued the execution of their ongoing share buyback programme, which included the purchase of over 726,000 ordinary shares for cancellation. This action, paired with steady confidence following the release of the bank's optimistic half-year global market outlook, anticipating a macroeconomic "soft landing", successfully lifted the stock's valuation. Ultimately, the upward trend reflects sustained investor trust in the company's long-term growth strategy after an active week on the corporate news front.
Entain, which operates as a leading global sports betting and gaming group with major brands like Ladbrokes and Coral, watched its shares drop by 9.1% last week. This steep decline was largely triggered by market anxieties following news that hedge fund veteran Ricky Sandler is shutting down Eminence Capital, Entain's third-largest shareholder with a roughly 6.5% stake. Because the fund will be returning cash to investors, the market braced for a massive block of shares to be liquidated, which heavily overshadowed subsequent late-week reports that Entain is exploring a sale of its Central and Eastern European joint venture to trim debt.
Market Commentary prepared by Walker Crips Investment Management Limited.
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Important Note
No news or research content is a recommendation to deal. It is important to remember that the value of investments and the income from them can go down as well as up, so you could get back less than you invest. If you have any doubts about the suitability of any investment for your circumstances, you should contact your financial advisor.
The value of investments can fall as well as rise. Investors may get back less than invested. Past performance is not a reliable indicator of future results.
The value of investments can fall as well as rise. Investors may get back less than invested.
