FTSE 100 Rebounds in Afternoon Trading

The FTSE 100 moved higher on Monday, outperforming European peers as banks and commodity-related stocks supported gains while investors continued to assess the implications of UK Prime Minister Keir Starmer’s resignation. The development has increased attention on Andy Burnham’s potential leadership bid and the policy direction he could pursue if chosen. Banking stocks led advances, with HSBC up 0.9% and Lloyds Banking Group, Barclays, NatWest and Standard Chartered all rising by nearly 2%. Energy majors also gained, with Shell up 0.6% and BP trading higher. Mining stocks added to the positive tone, with Rio Tinto up 0.8%, Glencore, Anglo American and Antofagasta rising around 1%, and Fresnillo climbing 2.1%. EasyJet gained more than 2% after rejecting multiple Castlelake offers, prompting the investor to take its £4.74 billion bid directly to shareholders. In contrast, Babcock fell 5% after reporting a drop in pretax profit.

The FTSE 100 traded around the flatline on Monday, as markets assessed the impact of UK Prime Minister Keir Starmer’s resignation. Starmer will remain in office until a successor is chosen, pledging to ensure an orderly transition, with a new leader expected by September. The move has increased focus on Andy Burnham’s potential leadership bid and the policies he may pursue if he replaces Starmer, while other candidates could compete during the summer. Homebuilders came under pressure, partly due to concerns over possible changes in housing policy, as Burnham has previously argued for greater government involvement in the sector. Barratt Redrow, Taylor Wimpey and Persimmon shares all fell around 2%. Among major index stocks, Unilever declined 0.9%, Rolls-Royce dropped 1.2% and BAE Systems lost 1.3%. In contrast, EasyJet shares rose over 2% after rejecting three Castlelake LP offers, prompting the firm to take its £4.74bn ($6.3bn) bid directly to shareholders.

The FTSE 100 hovered around 10,350 in early trading on Monday as investors weighed political uncertainty in the UK against encouraging developments in US-Iran negotiations. Reports indicate that Prime Minister Keir Starmer is considering stepping down and could announce a timetable for his departure in the coming hours, potentially paving the way for Greater Manchester Mayor Andy Burnham to become the next leader. However, such a move is not certain. Meanwhile, the US and Iran made progress during talks in Switzerland, with technical-level discussions set to continue this week, supporting market sentiment. Investors are looking ahead to the country's flash PMI data this week, which will provide fresh insight into business activity and the state of the domestic economy. Notable losses were seen in Unilever (-1.0%), BAE Systems (0.9%), and Haleon (-1.1%), while mining stocks outperformed, with Antofagasta (+1.8%) and Fresnillo (+1.2%) leading the gains.