London Stock Market Takes a Hit as BoE Raises Rates, Homebuilders Bear the Brunt

The FTSE 100 and FTSE 250 indexes both fell 0.5% and 1.5%, respectively, for the day, and logged their worst weekly performances in months.

Rate-sensitive homebuilders were the top losers, while drugmaker GSK rose after reaching a settlement in its Zantac litigation.

UK retail sales unexpectedly rose in May, while consumer sentiment hit its highest level since January 2022.

However, British economic data also showed signs of a slowdown in the services sector and a hawkish U.S. Federal Reserve continued to weigh on sentiment.