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In this week’s newsletter:
- Your Money Under Andy Burnham: What We Know So Far
- The 4 Best FTSE 100 ETFs to Buy
- Where Next for Bank of England Interest Rates?
- Who Will Be Andy Burnham’s Chancellor?
- This Vanguard FTSE Fund Offers Solid Exposure to UK Stocks
- Will Andy Burnham Scrap Stamp Duty?
- Chip Selloff Deepens
- 4 Charts on the Not-so-Magnificent Seven
The day before the outbreak of the Iran war, the FTSE 100 was on the verge of breaking through 11,000 points, another new record. Despite a change in UK prime minister and the fraying of the US-Iran ceasefire, the UK stock market is holding up fine. For investors looking for low-cost exposure to the main UK index, check out our updated list of the best FTSE 100 exchange-traded funds in 2026, compiled by Joe Carrick-Varty. Looking for exposure to a wider UK index? This Vanguard fund “is the best passive option for investors seeking broad UK equity exposure,” say Morningstar analysts.
One potential swing factor for UK stocks is the future direction of interest rates, which Christian Mayes looks into here. The Bank of England meets at the end of July—with no meeting in August—but is not expected change interest rates. This week the likelihood of rate rises in September and November has moved over 50%, according to financial futures.
This week saw the coronation of Andy Burnham as Labour Party leader, with his appointment as prime minister a formality for July 20. One of this week’s most-read stories has been on the vexed question of stamp duty—a much-disliked levy on property transactions that could be overhauled (and replaced with a potentially more punitive tax for the wealthiest homeowners). We’ve rounded up all of Andy Burnham’s possible policies here.
As Rachel Reeves possibly bows out as chancellor with her Mansion House speech—she urges closer ties with Europe and attempts to secure her legacy—her replacement is set to be announced, and that will matter a lot to bond markets investors in the rest of the year.
In stock markets, the chip momentum trade hit the wall this week after a very strong run. Read Karen Gilchrist’s roundup of the latest reversal in sentiment, as well as her coverage of the latest state of play in European defense stocks.
Tech earnings season is also upon us, with Netflix—a kind of honorary member of the Mag7—the first to report. Expect more earnings drama in the coming weeks. In the meantime, read Lauren Solberg’s analysis of the Magnificent Seven’s travails in this piece.
Ollie Smith, Senior Editor, Morningstar UK
