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FTSE 100 down 0.3%, FTSE 250 falls 0.7%

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Homebuilding stocks lead sectoral declines

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MJ Gleeson slumps after warning of lower profit

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Moonpig falls after brokerage downgrade

July 4(Reuters) -

London's main stock indexes fell on Friday, weighed down by

domestic fiscal worries and weaker global sentiment ahead of a

looming tariff deadline.

As of 0910 GMT, the benchmark FTSE 100 was down

0.3%, while the domestically-focussed FTSE 250 lost

0.7%. Both indexes are set to end the week lower.

The midcap index ended the second quarter on Monday by

logging its largest quarterly gain in over four years, but has

since come under pressure as U-turns on welfare reforms have

blown a hole in Finance Minister Rachel Reeves' budget plans.

The reform bill passed on Tuesday, but with limited

cost-reduction measures from the initially expected 5 billion

pounds ($6.83 billion) in savings, leading to concerns of

raised taxes or spending cuts elsewhere.

S&P Global said the inability to make modest cuts to welfare

spending showed the government's "limited budgetary room for

manoeuvre."

Among sectors, homebuilder stocks led

sectoral losses on Friday, dropping 2% after MJ Gleeson

warned of profit being at the lower end of market expectations

for fiscal 2026 due to subdued demand.

The group slumped 6.7% and was the top decliner on the

smallcap index.

Larger peers Vistry, Persimmon and Taylor

Wimpey fell 3.1%, 1.6% and 1.5%, respectively.

Industrial metal stocks fell, tracking lower

metal prices. Anglo American, Antofagasta ( ANFGF ) and

Glencore ( GLCNF ) slipped over 1% each. Atalya lost 3%.

On the economic data front, S&P's UK construction PMI showed

Britain's construction industry downturn reduced in June with

homebuilding growth, but commercial building tumbled due to

economic worries.

Elsewhere, global markets were subdued after U.S. President

Donald Trump said Washington will start sending letters with

tariff rates to countries on Friday.

Britain remains one of the only countries to have cinched a

deal with the U.S.

Among individual stocks, greeting card and gifting retailer

Moonpig fell nearly 6% to the bottom of the midcap

index after a rating downgrade by Deutsche Bank.

($1 = 0.7323 pounds)