London shares finished the week on a positive note, with the FTSE 100 closing 0.25% higher on Friday despite continued weakness in UK business activity.
The S&P Global UK PMI Composite Output Index slipped to 49.3 in June 2026, down from 49.7 in May 2026, and came in marginally below the flash estimate of 49.4.
A reading below 50 signals contraction, and the latest data confirmed the UK’s private sector remained in negative territory for the month.
The Services PMI fell to 48.8 from 49.3, marking its weakest reading since the start of 2023, underscoring persistent pressure across the sector.
S&P Global Market Intelligence economics director Tim Moore said: “Strong cost pressures, lacklustre demand and business uncertainties arising from the Middle East conflict were the most prominent themes highlighted by service sector firms in June.”
Moore added that these conditions led to “fragile investment sentiment, elevated risk aversion among clients and squeezed consumer budgets, which in turn contributed to the fastest reduction in new work for just over three-and-a-half years.”
Separately, Bank of England data revealed that the UK government’s gross reserve assets edged up to $225.75 billion in June from $225.61 billion in May.
On the corporate front, HSBC (HSBA.L) was reported to be in preliminary discussions with potential investors over a significant risk transfer linked to a portfolio of loans across the Asia Pacific region.
Bloomberg News, citing people familiar with the matter, also reported that Standard Chartered (STAN.L) is mulling a similar transaction associated with $2 billion of global corporate loans under its Chakra SRT program.
HSBC closed the session up 0.40%, while Standard Chartered ended the week 1.53% higher, both stocks benefiting from positive investor sentiment around the reported deals.
Mid-cap stock Johnson Matthey (JMAT.L) was the standout performer of the session, surging 4.95% after receiving Chinese regulatory clearance for a major disposal.
The State Administration for Market Regulation in China approved the sale of Johnson Matthey’s Catalyst Technologies unit to Honeywell International, removing a key hurdle for the transaction.
The deal is expected to be finalised by the end of August, providing a clear timeline for completion of a transaction that has been closely watched by investors.