28 July 2026
Last week, Bank of England policymakers faced renewed monetary tightening expectations, especially as money markets now fully price further increases and anticipate upcoming hikes if oil prices continue to rise. Elsewhere, the UK Purchasing Managers' Index reached a three-month high of 52.1, driven by a notable recovery in the services sector, and UK retail sales surprised on the upside in June, rising by 1% month-on-month against a consensus forecast of a 0.3% decline.
In equities, the FTSE 100 index finished the week up, outperforming as markets digested the new cabinet and rotated into defence stocks. Market sentiment was further buoyed by newfound political clarity. Prime Minister Andy Burnham was sworn in, immediately revealing his cabinet alongside policies targeting regional inequality. To accelerate devolution and economic growth, he established a "Number 10 North" headquarters in Manchester. The new administration also unveiled early policy announcements addressing the cost of living, including energy tax cuts and capped bus fares. Meanwhile, the newly installed Chancellor of the Exchequer, John Healey, committed to maintaining fiscal discipline amid rising debt and tax burdens, noted the government will protect against economic shocks.
Across the Atlantic, geopolitics moved back into consideration as tensions with Iran escalated again with the latest hostilities between the United States and Tehran. This heightened tension was further fuelled by reports that fighting continued after Iran rejected the ceasefire proposal from President Donald Trump. Such military escalations alongside geopolitical friction helped push West Texas Intermediate crude up. Meanwhile, expectations surrounding the Federal Reserve shifted, as markets navigated macroeconomic headwinds. The central bank remained in its blackout period ahead of its July decision, with investors pricing a 36% chance of a July rate cut. Although higher Treasury yields emerged as a modest headwind, driven by oil and fiscal concerns, and Trump’s reimplemented tariffs, with duties of up to 12.5% on most major trading partners.
In markets, major US equities dropped last week. Domestic equities extended their previous pullback, with the S&P 500, Nasdaq and Dow Jones falling. Conversely, semiconductors and memory stocks performed better following their previous sharp sell-off. Megacap technology shares traded weaker, with Tesla dropping and Alphabet falling on increased capital expenditure guidance after releasing their earnings.
Finally, the UK housing market experienced unusual weakness for the time of year, hampered by a combination of a new Prime Minister, warm weather, and England's World Cup run. Consequently, average asking prices for newly listed homes fell by 1% in July, marking a significantly steeper drop than the historical average of -0.2% for the month. Elsewhere in the sector, reinstated Housing Secretary Angela Rayner ruled out introducing rent controls in England, noting that recent legislative changes under the Renters' Rights Act are already significantly impacting the market.
Anglo American is a leading global mining company focused on the responsible production of essential resources such as copper and crop nutrients. Last week, the company's stock surged 9.44% over the trading week, closing at £37.21 on 24 July 2026. This strong performance was primarily driven by a highly positive second quarter production report, where investors cheered robust operational output and a significant reduction in unit cost guidance for its copper operations. Additionally, the rally was supported by management's reassurance that its strategic portfolio restructuring, including the sale of its Australian steelmaking coal business, the spin-off of De Beers, and the anticipated merger with Teck, is progressing exactly as planned.
Segro owns, manages and develops modern big-box warehouses, data centres and urban logistics properties across the UK and Europe. Last week, the company's stock surged 9.09%, closing at 979p on 24 July 2026. This impressive weekly performance was primarily driven by the revelation that Segro had received a third takeover proposal from the American logistics real estate giant Prologis, which the board had now accepted. The £13.5 billion (993p per share) valuation reflected the company's portfolio and long-term prospects, and the bid fuelled intense market speculation, driving the share price higher.
Centrica, the major UK energy supply and services company, experienced a significant market setback when its stock price dropped 5.94% to close at 163p on 24 July 2026. This notable decline was directly triggered by the release of the company's first-half financial results, which largely disappointed investors and fell short of broader market expectations. The sharp sell-off was primarily driven by an 18% decline in adjusted earnings before interest, taxes, depreciation, and amortisation (“EBITDA”), which fell to £737 million and signalled a concerning squeeze on underlying profitability. Compounding this earnings drop was a substantial top-line revenue miss, along with a large cash outflow as the firm funded its transformation initiatives.
Market Commentary prepared by Walker Crips Investment Management Limited.
This publication is intended to be Walker Crips Investment Management's own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this document constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN:226344) and is a member of the London Stock Exchange. Registered office: 128 Queen Victoria Street, London, EC4V 4BJ. Registered in England and Wales number 4774117.
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.
