International Recap, June 23: Political Uncertainty and Tech Weakness Pressure FTSE 100 and Nikkei 225

The FTSE 100 fell 0.09% to 10,429, while the Nikkei 225 dropped 3.55% to 69,788. Risk appetite weakened across developed markets amid political uncertainty in the U.K. and a sharper pullback in Japanese equities.

International market movers

London shares were pressured by leadership uncertainty after Keir Starmer’s resignation, with investors also worrying about U.K. fiscal policy and borrowing. Global tech weakness and softer U.S. tech futures added to the FTSE 100’s muted tone. Banks and defensives helped cushion the move, limiting the downside. The MSCI EAFE tracked the broader developed-market wobble as Europe and Japan both faced weaker sentiment.

What this means for investors

Mining stocks were the major decliners across the FTSE 100 as a combination of declining commodity prices, a strengthening U.S. dollar, worsening manufacturing data, and U.K. political uncertainty prompted unease across the index. The FTSE 100 rallied throughout the day, however, nearly breaking even after opening roughly 1% lower.

Meanwhile, the Nikkei 225 plunged nearly 4% as the tech-heavy index could not avoid the global AI and semiconductor sell-off today. However, it is worth noting that even after today’s drop, the Nikkei 225 is up 81% over the last year and 37% in 2026, so some analysts think this move may come from opportunistic profit-taking on a more volatile day.

Global markets will be watching the U.S. tech and AI titans -- primarily Micron Technology and its earnings tomorrow -- over the coming weeks for clues on how long-term AI demand curves are expected to evolve, and whether the semiconductor market will continue to boom alongside AI’s acceleration.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.