London Daily

Focus on the big picture.
Sunday, Jul 12, 2026

UK midcaps hit lowest in over a month on recession angst

UK midcaps hit lowest in over a month on recession angst

London stocks fell on Monday with the midcap index closing at its lowest level in more than a month on increasing jitters about a worsening cost-of-living crisis and aggressive interest rate hikes by major central banks to combat it.

The FTSE 250 index (.FTMC), home to several companies exposed to the domestic economy, slid 2% to its lowest level since July 21.

Airlines, industrials, homebuilders and retailers took the biggest hit among midcaps.

The exporter-heavy FTSE 100 (.FTSE) slipped 0.2%, but losses were capped by sterling's tumble to mid-July lows.

"The FTSE 100 is absolutely being helped by the pound slipping. Lot of things are painting a pessimistic picture for the UK consumer over the short to medium term which is why we have seen something of a knee jerk reaction today in these more consumer stocks," David Jones, chief market strategist at Capital.com said.

"I wonder if the reaction that we've seen today is maybe a bit of an overreaction... it's a funny time of year when volumes are a little bit thin."

A cocktail of factors including hawkish signals from major central banks, surging energy prices in Europe and an eight-day protest by workers in Britain's container port weighed on the mood.

"The port strikes would increase the cost of purchasing goods, adding to the inflation as an issue and essentially constraining supply," said Joshua Mahony, a senior market analyst at IG Group. "It's not good for the economy."

Britain's slide towards a recession gathered momentum after data last week showed inflation jumping above 10%, wages lagging far behind price growth and consumer confidence sinking to a record low.A Citigroup economist wrote in a note that he expects inflation in the UK to peak at 18% - nine times the Bank of England's target - in early 2023.

"It is an incredible number and I can't quite see it at that level, but that's really spooked investors," Jones added.

Investors also appeared to be nervous ahead of the U.S. Federal Reserve's annual symposium in Jackson Hole, Wyoming later this week.

Wizz Air (WIZZ.L) dropped 9.8% as the European budget carrier said its finance chief would step down from his post.

Cineworld (CINE.L) slumped 21.4% as the world's second-largest cinema chain operator was considering options including a possible bankruptcy filing in the United States.

Newsletter

Related Articles

0:00
0:00
Close
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
Britain and United States Maintain Focus on Pharmaceuticals Cooperation and Industrial Growth
UK Public Services Face Continued Pressure as Government Promises Visible Improvements
Regional Economic Power Becomes Key Theme in Britain’s Next Political Phase
Britain Expands Support for Small Businesses as Firms Seek Better Access to Finance
UK Economy Remains Central Political Challenge as Cost of Living and Growth Concerns Persist
National Health Service Introduces New Workplace Reviews to Improve Conditions for Healthcare Staff
UK Life Sciences Sector Secures More Than Three Billion Pounds in Investment to Support Innovation
Britain Strengthens Defence Strategy as Security Concerns Reshape Military and Industrial Policy
Andy Burnham Promises Stronger UK Defence Industry and Expanded Domestic Production
UK Government Faces Difficult Spending Choices as Labour Leadership Transition Approaches
Rachel Reeves Warns Andy Burnham of Immediate Economic Challenges After Expected Leadership Change
Andy Burnham Prepares to Lead UK Government With Plans for Regional Power Shift and Economic Reset
Government Creates Emergency Support Scheme for Financially Struggling Universities
United Kingdom Replaces Traditional Farm Subsidies With Payments Linked to Environmental Performance
National Grid Reports First Week of Electricity Generation Without Fossil Fuels
United Kingdom Financial Regulator Introduces Tougher Capital Rules for Cryptocurrency Exchanges
Belfast Harbour Expands Operations to Attract Investment Through United Kingdom and European Union Market Access
Scottish Government Threatens Legal Challenge Over Westminster Cuts to North Sea Transition Funding
United Kingdom Accelerates Trans-Pennine High-Speed Rail Project Linking Northern Cities
United Kingdom Secures Ten Billion Pound Investment for Cambridge Quantum Computing Campus
Port Talbot Steelworks Wins Support for Green Hydrogen Transition and Protection of Industrial Jobs
United Kingdom Sends Royal Navy Carrier Strike Group to Indo-Pacific as Regional Security Focus Expands
National Health Service Expands Artificial Intelligence Diagnostics Across England to Reduce Screening Backlogs
United Kingdom Launches Fifty Billion Pound Infrastructure Fund to Accelerate Housing and Construction
UK Medical Chiefs Update Health Guidance to Promote Everyday Physical Activity
Office of Communications Keeps Wikipedia Under Review Under UK Online Safety Rules
UK Defence Ministry Expands Deep-Strike Capability Through Precision Missile Programme
Russell Group Universities Warn Funding Cuts Could Damage NHS Workforce Training
UK Parliament Calls for National Emergency Broadcast as Heatwave Conditions Intensify
UK and Netherlands Strengthen Naval Cooperation With New Amphibious Defence Partnership
UK Defence Ministry Joins International Missile Programme With One Hundred and Ninety Million Pound Investment
Bank of England Warns Middle East Conflict and AI Risks Could Pressure UK Economy
UK Government Introduces New Rules to Limit Foreign Influence in Political Donations
UK and France Prepare Naval Mission to Protect Shipping Through Strait of Hormuz
United States Pressures UK to Increase Defence Spending at NATO Summit
Bank of England Warns Artificial Intelligence Investment Boom Could Create Financial Stability Risks
Bank of England Begins Direct Oversight of Critical Technology Providers Supporting UK Finance
Andy Burnham Set to Become UK Prime Minister After Labour Leadership Race Clears Path to Downing Street
Scottish Fishing Industry Calls for Emergency Support Amid Rising Costs
UK Supports Stronger European Response to Russian Actions in Ukraine
Devon and Cornwall Police Release Suspect in Ann Widdecombe Murder Investigation
×