(Il Sole 24 Ore Radiocor) - Milano, 19 giu - Shares in London closed lower as investors assess data showing that public borrowing rose to its highest May level since 2019 and the latest political developments.

Prime minister Keir Starmer's rival, Andy Burnham won a special election allowing him to return to parliament setting up a future contest for the leadership of the Labour Party between the two.

Despite warning that such a contest would throw the country 'into chaos', Starmer vowed to fight any challenge.

Gilt yields rose as UK public borrowing, the difference between total public sector spending and income, was 23.3 billion pounds in May, 5.4 billion, or 30.4% more than in May 2025, and 5.6 billion pounds more than the 17.7 billion forecast by the Office for Budget Responsibility (OBR), according to the Office for National Statistics (ONS).

Also on the data front, UK retail sales volumes rose by 1.2% over the month in May, following a fall of 1.0% in April, according to the Office for National Statistics (ONS).

The reading for April was revised up from a 1.3% fall and the reading for March was revised up to 0.7% from a 0.6% increase.

Also weighing, diplomatic efforts suffered a setback after scheduled US-Iran negotiations in Switzerland were called off, with vice president JD Vance cancellling plans to travel to Switzerland for the ceremonial signing of an interim deal with Tehran.

The London FTSE 100 closed down 0.41% at 10,356.90 points.

(RADIOCOR) 19-06-26 18:16:50 (0497) 5 NNNN