UK shares to watch now: top FTSE stocks and market trends

The FTSE 100 today: where things stand

The FTSE 100 breached 10,000 points for the first time on the opening day of trading in 2026, capping an exceptional 2025 during which the index delivered gains of 21.6%, its strongest annual performance since 2009. That momentum has continued: as of mid-June 2026, the FTSE 100 has returned approximately 22.8% year-to-date, well ahead of the S&P 500's 17.2% over the same period.

Its highest closing level was 10,910.55, reached on 27 February 2026. The index has since pulled back from those highs to trade around 10,600, reflecting ongoing geopolitical uncertainty in the Middle East and some profit-taking in its strongest-performing sectors.

The FTSE 100's outperformance has been driven by a distinctive set of structural advantages: its heavy weighting toward mining, precious metals, defence and banking has aligned it well with the dominant macro themes of the past two years, from commodity price strength and rising defence budgets to higher interest rates benefiting financials.

The FTSE 100 in 2026, in numbers

Sources: proactive, Trading Economics

What is driving the FTSE 100’s performance?

The FTSE 100's outperformance in 2025 and into 2026 has been driven by four primary forces:

• Defence re-rating: NATO members committed to raising defence spending to 5% of GDP following the June 2025 summit, triggering a sustained re-rating of UK defence companies. Rolls-Royce and BAE Systems have been the primary beneficiaries.
• Precious metals boom: Gold and silver prices hit multi-year or all-time highs in early 2026, lifting FTSE miners including Fresnillo, Anglo American and Antofagasta. FTSE 100 miners account for a disproportionate share of the index's natural resources weighting.
• Banking earnings strength: UK banks posted strong results through 2025 and into 2026, with NatWest, Lloyds, Barclays and HSBC all delivering earnings above market expectations on the back of sustained net interest income and active capital return programmes.
• M&A activity: a return of FTSE 100 merger and acquisition activity, including deals for Beazley and Schroders, has added to the positive momentum and renewed international investor interest in UK equity valuations.

Source: Proactive Investors

UK shares to watch right now

The following profiles cover the UK stocks attracting the most attention from investors and analysts in late June 2026, based on their financial results, upcoming catalysts and current market positioning. This is not a personal recommendation to buy or sell.

Rolls-Royce

Rolls-Royce has been one of the defining UK equity stories of the past three years and remains under close watch heading into its H1 2026 results, due on 30 July 2026. The company's full-year 2025 results showed underlying operating profit ahead of guidance, prompting a significant upgrade to its mid-term targets: it now expects underlying operating profit of £4.9bn-£5.2bn and free cash flow of £5.0bn-£5.3bn, reaching the top end of its prior guidance range two years early.

Alongside those results, Rolls-Royce announced a £7bn-£9bn share buyback programme for 2026-2028, with £2.5bn to be completed in 2026 alone and reinstated its regular dividend with a full-year 2025 payout of 9.5p per share, the first dividend in more than five years. The shares currently trade around 1,360-1,415p, having pulled back from earlier highs, with H1 results and recent wins including a US Air Force contract and a hydrogen engine technology breakthrough acting as near-term catalysts. The consensus analyst rating is Buy, based on 16 of 20 covering analysts.

BAE Systems

BAE Systems has been the primary beneficiary of the structural re-rating of European defence following the NATO 5% GDP spending commitment. The company reported record sales of £30.7 billion in 2025 and has guided for sales growth of 7% to 9% and earnings per share growth of 9% to 11% in 2026. That guidance was reaffirmed in its most recent trading update in February 2026 and remains unchanged.

The shares trade in a 52-week range of 1,529p to 2,360p. Analyst price targets cluster between £21.50 and £24.38, with a consensus Buy rating from 10 of 18 covering analysts. BAE recently selected MDA Space to supply components for a US programme, adding to a growing international order book. Europe's largest defence contractor by revenue, it continues to win significant contracts across NATO member procurement programmes.

AstraZeneca

AstraZeneca reported Q1 2026 total revenue of $15.3 billion, up 8% at constant exchange rates and ahead of consensus expectations of $14.7 billion, driven by double-digit growth in oncology and rare disease. Core operating profit rose 12% and the company reaffirmed its full-year 2026 guidance of mid-to-high single-digit revenue growth and low double-digit core EPS growth at constant exchange rates. The company's market capitalisation is approximately $283.7 billion.

The quarter was also marked by positive Phase III readouts for two new molecular entities, alongside 14 regulatory approvals in major markets since the previous quarter. CEO Pascal Soriot described the company as being in a 'catalyst-rich period'. H2 2026 results are due in late July and are the next significant disclosure event for shareholders.

HSBC

HSBC remains the FTSE 100's largest constituent by market capitalisation at approximately £238 billion, and one of its most actively traded income stocks. The bank has been executing a major strategic pivot under CEO Georges Elhedery, who took over from Noel Quinn in late 2024, with a restructuring designed to reduce complexity and refocus the group around its core Asian and wholesale banking franchises.

Q1 2026 results, published in May 2026, showed pre-tax profit of $9.9 billion and an ongoing commitment to capital returns, with the bank maintaining its distribution policy. The shares currently trade around 1,425p. HSBC is one of the most widely held income stocks among UK retail investors, offering a dividend yield of approximately 6-7% at current levels. H1 2026 results are due in late July.

Barclays

Barclays has been one of the stronger-performing UK banks in 2026, with full-year 2025 results showing total income of £29.1 billion and profit before tax of £9.1 billion, both up year-on-year. The bank's investment bank delivered double-digit returns on tangible equity, with FICC revenue up 21% reflecting strong activity in fixed income markets.

The bank is targeting a return on tangible equity above 14% by 2028 and has an active capital return programme in place. Shares trade around 487p. H1 2026 results are expected in late July and will be the key near-term catalyst, with analyst attention focused on whether the investment banking momentum from 2025 has carried into the new year.

GSK

GSK reported Q1 2026 turnover of £7.6 billion, up 5% at constant exchange rates, with full-year 2026 guidance maintained for 3-5% turnover growth and 7-9% core operating profit growth. The company commenced a £2 billion share buyback programme in Q1 2025, due for completion by the end of Q2 2026, and has declared a Q1 2026 dividend of 17p per share.

GSK's pipeline remains a key area of investor focus, particularly its vaccines portfolio and oncology assets. Q2 2026 results are due on 28 July 2026. The shares have underperformed AstraZeneca significantly over the past three years, and the discount between the two UK pharma giants remains a subject of regular analyst debate.

BP

BP has been repositioning under new CEO Meg O'Neill, who took over in early 2025, with a decisive pivot away from the previous management's renewables-heavy strategy back toward oil and gas. O'Neill has accelerated asset disposals in non-core areas and refocused capital allocation toward higher-return hydrocarbon projects. The market has responded positively: BP shares have recovered from their 2024 lows and trade around 513p.

The company's dividend programme and its leaner operational focus have made it an ongoing income investment proposition for UK investors. Q2 2026 results are due in late July. Oil price volatility and the pace of its strategic execution remain the key near-term variables for the investment case.

Sectors to watch in H2 2026

Defence

The defence re-rating that drove FTSE 100 performance in 2025 currently shows little sign of reversing. NATO's commitment to 5% of GDP spending, structural increases in European defence budgets, and ongoing geopolitical instability in the Middle East and Eastern Europe continue to provide a powerful backdrop for Rolls-Royce, BAE Systems and Babcock. The sector is no longer cheap on conventional metrics, but earnings upgrades continue to support valuations.

Pharmaceuticals

AstraZeneca and GSK both report H1 results in late July and both enter that period with strong momentum. AstraZeneca's 'catalyst-rich period' of pipeline readouts has the potential to drive significant share price movement if data from its oncology and rare disease programmes continues to deliver. GSK's Q2 results will be watched for evidence of acceleration in its vaccines and specialty medicines divisions.

Financials

UK banks enter H2 2026 from a position of strength, with NatWest, Lloyds, Barclays and HSBC all having delivered strong 2025 full-year results. The key risk is whether the Bank of England rate cutting cycle accelerates faster than expected, which would compress net interest margins. The BoE Bank Rate is currently 3.75% with markets pricing two further quarter-point cuts in 2026.

Mining and precious metals

Gold hit all-time highs in early 2026 before pulling back, and silver crossed $100 per ounce for the first time in January 2026. FTSE 100 precious metal producers including Fresnillo and Endeavour Mining were among the strongest performers in early 2026. The underlying drivers, central bank gold buying, geopolitical safe-haven demand and a softening dollar, remain broadly intact, though the sector has given back some gains from its highs.

How to trade or invest in UK shares

There are several ways to get exposure to UK shares through us, depending on your investment goals, time horizon and risk appetite / tolerance.

For long-term investors, our stocks and shares ISA allows you to hold FTSE 100 shares with all gains and dividends sheltered from UK capital gains tax and income tax permanently (but not stamp duty), within the £20,000 annual allowance. Our share dealing account provides the same access without the annual contribution limit, which is useful for larger investments or non-ISA-eligible assets.

For shorter-term traders, CFDs and spread bets allow leveraged exposure to individual UK stock price movements in either direction, without owning the underlying shares. We offer access to FTSE 100 and FTSE 250 stocks alongside thousands of international markets. 68% of retail investor accounts lose money when trading spread bets and CFDs with us, making risk management strategies such as stop loss orders an essential part of entering the market, helping individual investors to prevent losses beyond a pre-determined level.