London close: FTSE falls after uninspiring construction data; easyJet surges
By Michele Maatouk
Date: Monday 06 Jul 2026
(Sharecast News) - London stocks ended lower on Monday after an uninspiring reading on the UK construction sector, but easyJet powered ahead as it agreed to a sweetened takeover approach from private equity firm Castlelake.
The FTSE 100 closed down 0.3% at 10,651.77.
A survey out earlier showed the downturn in the construction sector eased slightly in June. The S&P Global UK construction purchasing managers' index ticked up to 38.4 from a six-year low of 38.2 in May. However, it remained well below the 50.0 mark that separates contraction from expansion and construction output has now fallen every month since January 2025.
The latest fall decline was the second-fastest since the start of the pandemic, S&P Global said.
Tim Moore, economics director at S&P Global Market Intelligence, said: "The downturn in UK construction output lost some intensity in June amid a softer reduction in commercial building work. House building and civil engineering activity nonetheless registered sharper declines than in May, with the latter seeing its weakest performance since the start of the pandemic.
"New work decreased to the least marked extent since March, despite widespread reports of challenging market conditions. Construction companies commented on headwinds from subdued housing sales, elevated interest rates and squeezed consumer finances, alongside cutbacks to business investment plans. Some firms noted delays with infrastructure work and fewer public sector tender opportunities, but energy markets were cited as an area of positivity."
Patrick Munnelly at Tickmill Group said: "London started the week with an early push to a fresh four-month high, but the move failed to hold. After a flat open and a subsequent rally, the FTSE 100 slipped into negative territory on Monday as investors turned more cautious following another weak reading from the UK construction sector. The market tone was not outright bearish, but the early reversal mattered. The benchmark's failure to sustain a breakout suggested investors remain reluctant to chase UK equities higher while domestic activity data continue to weaken, political uncertainty persists and the Bank of England remains in wait-and-see mode rather than moving toward rate cuts."
He said the latest construction survey reinforced that caution, showing the sector remains one of the weakest parts of the UK economy, weighed down by elevated financing costs, weak project starts and subdued confidence.
"That follows last week's services PMI contraction and earlier softness in mortgage approvals and house prices," he said. "Taken together, the message is clear: the UK economy is not collapsing, but several rate-sensitive sectors are under real pressure. Construction, housing and parts of consumer services are all showing the delayed impact of restrictive monetary policy and elevated gilt yields."
In equity markets, easyJet surged after saying it was ready to accept a sweetened £5.5bn takeover offer from Castlelake after the private equity group tabled a fifth offer at 690p a share. This followed four prior rejected approaches at 560p, 600p, 625p and 650p. BA and Iberia owner IAG also flew higher.
High-performance computing firm Raspberry Pi rallied after saying it has tapped Tim Powell to take over as chief financial officer, succeeding Richard Boult with effect from 16 October. The company said Powell brings over 20 years' leadership experience across public companies.
Close Brothers tumbled after a downgrade to 'sector perform' from 'outperform' at RBC Capital Markets, which slashed its price target to 470p from 625p.
Ocado fell as it said that founder and chief executive Tim Steiner will step down in 2028. Following the appointment of a successor, Steiner will transition into a founder role, Ocado said.
ITV was little changed after agreeing to sell its media and entertainment business to Comcast-owned Sky for up to £1.6bn.
Market Movers
FTSE 100 (UKX) 10,651.77 -0.26%
FTSE 250 (MCX) 23,504.22 -0.15%
techMARK (TASX) 6,026.87 -0.08%
FTSE 100 - Risers
Relx plc (REL) 2,393.00p 2.53%
BAE Systems (BA.) 2,025.00p 2.27%
St James's Place (STJ) 1,332.00p 2.23%
London Stock Exchange Group (LSEG) 8,852.00p 2.10%
International Consolidated Airlines Group SA (CDI) (IAG) 484.50p 1.66%
IG Group Holdings (IGG) 1,892.00p 1.61%
Flutter Entertainment (DI) (FLTR) 7,956.00p 1.61%
Barclays (BARC) 529.50p 1.51%
Prudential (PRU) 1,041.00p 1.51%
Standard Chartered (STAN) 2,150.00p 1.32%
FTSE 100 - Fallers
Compass Group 11 (CPG) 31.57p -3.49%
Associated British Foods (ABF) 1,898.50p -2.99%
Coca-Cola HBC AG (CDI) (CCH) 5,025.00p -2.80%
Halma (HLMA) 3,906.00p -2.69%
Metlen Energy & Metals (MTLN) 41.64p -2.57%
AstraZeneca (AZN) 14,100.00p -2.46%
Fresnillo (FRES) 2,852.00p -2.40%
Whitbread (WTB) 2,358.00p -2.28%
Tesco (TSCO) 459.10p -2.05%
Croda International (CRDA) 2,984.00p -2.00%
FTSE 250 - Risers
easyJet (EZJ) 610.00p 9.79%
Baltic Classifieds Group (BCG) 182.10p 5.26%
Raspberry PI Holdings (RPI) 886.00p 4.54%
Oxford Nanopore Technologies (ONT) 125.80p 4.49%
Man Group (EMG) 310.60p 3.74%
Playtech (PTEC) 327.60p 3.74%
Seraphim Space Investment Trust (SSIT) 200.00p 3.41%
Hays (HAS) 35.34p 3.09%
IntegraFin Holding (IHP) 385.00p 2.67%
PPHE Hotel Group Ltd (PPH) 1,644.00p 2.62%
FTSE 250 - Fallers
Close Brothers Group (CBG) 399.80p -9.10%
Greggs (GRG) 1,520.00p -4.52%
Hansa Investment Company Limited (DI) (HAN) 324.00p -3.57%
FirstGroup (FGP) 178.60p -3.30%
Genuit Group (GEN) 267.80p -3.18%
Renishaw (RSW) 4,900.00p -2.97%
4Imprint Group (FOUR) 3,680.00p -2.90%
Ceres Power Holdings (CWR) 512.00p -2.85%
Oxford Instruments (OXIG) 3,012.00p -2.78%
Endeavour Mining (EDV) 3,941.00p -2.50%
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