London's FTSE 100 falls 1% as miners and tech weigh; BoE holds rates

BY Reuters | ECONOMIC | 06/18/26 12:43 PM EDT

(Updates after markets close)

* FTSE 100 down 1%, FTMC down 0.1%

* Tesco (TSCDF) falls on weak Q1 sales growth

* Intertek (IKTSF) up after agreeing EQT takeover

* BoE holds rate as expected

By Utkarsh Hathi and Tharuniyaa Lakshmi

June 18 (Reuters) - Britain's FTSE 100 fell on Thursday, pressured by miner and technology shares, while the Bank of England left interest rates unchanged, as widely expected.

The blue-chip FTSE 100 index closed 1% lower at 10,399.70 points, while the midcap FTSE 250 eased 0.1%. The BoE held rates at 3.75%, with only two of the nine-member committee voting in favour of a rate hike amid persistent inflation concerns. The U.S. Federal Reserve also held rates on Wednesday, though nine Fed policymakers forecast a rate hike this year.

"The conditions don't seem in place for sustained inflationary pressure. So we think the BoE will be able to avoid the kind of monetary tightening that the European Central Bank has already started to deliver and that the Fed hinted at last night," said Luke Bartholomew, deputy chief economist, at Aberdeen.

* Precious metal miners declined the most, as gold and silver prices eased. Fresnillo and Hochschild Mining fell 5.8% and 7.2%, respectively.

* London Stock Exchange Group (LDNXF) was the biggest individual faller, down 7% after Rothschild Redburn downgraded the stock to "neutral". Technology shares more broadly lost 3.3% .

* Interest rate-sensitive homebuilders were down 1.1%, with Persimmon falling 6.1%.

* The world's largest exhibition group Informa (IFPJF) was the biggest gainer on the FTSE 100, rising 2.5% after forecasting stronger growth in 2027.

* Oil giants BP and Shell fell 1.6% each, as oil prices touched their lowest since the start of the Iran war.

* Intertek (IKTSF) gained 1.6% after the testing and certification firm agreed to a takeover by Swedish private equity firm EQT.

* The northern English constituency of Makerfield votes on Thursday in a local election that could trigger a leadership challenge to Prime Minister Keir Starmer, who has vowed to remain in office.

* "Political uncertainty is impacting investor sentiment and has also manifested itself in higher bond yields than the economic data would suggest, particularly at longer durations," said Clive Beagles, senior fund manager at J O Hambro Capital Management. "The impact is felt more strongly in the FTSE 250 than the FTSE 100 because it has greater domestic exposure."

(Reporting by Utkarsh Hathi and Tharuniyaa Lakshmi in Bengaluru, Additional reporting by Sophie Kiderlin in London; Editing by Tasim Zahid, Kirsten Donovan)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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