May 13 (Reuters) - UK stocks ended higher on Wednesday,
recovering from a sluggish start as gains in industrial miners
and banks helped offset concerns over domestic political
uncertainty.
The blue-chip FTSE 100 index closed 0.58% higher,
while the mid-cap FTSE 250 rose 0.28%. Industrial miners
rose 4.36% and banks advanced
1.44%, rebounding from a day earlier.
Intertek ( IKTSF ) was one of the top gainers on the FTSE
100, closing 5.28% higher after the product testing company said
on Wednesday it was ready to recommend a 9.4 billion pound
($12.7 billion) takeover proposal by Swedish private equity
group EQT.
The gains helped reassure investors unsettled by the Middle
East impasse, rising oil prices and fresh uncertainty over Prime
Minister Keir Starmer's future.
Health Minister Wes Streeting is preparing to resign and
could quit as early as Thursday, the Times reported on
Wednesday, adding that he is likely to mount a formal
challenge for the party leadership.
That came despite Starmer's plea to voters and his party's
lawmakers to stick with him and avoid a leadership contest he
said would only bring chaos.
"The Prime Minister may be 'forced' to step down if enough
ministers resign. His defenestration seems to be a matter of
when rather than if," said Robert Wood, chief UK economist at
Pantheon Macroeconomics.
Investors were also worried that a potential successor to
Starmer might advocate for increased spending, despite Britain's
already strained finances.
"The likely replacements would probably not be as fiscally
disciplined. A discretionary loosening in fiscal policy is on
the way regardless of who is PM," said Ruth Gregory, deputy
chief UK economist at Capital Economics.
Meanwhile, U.S. President Donald Trump's state visit to
China for talks with Chinese President Xi Jinping is in focus.
Trump told reporters he does not need Beijing's help to end
the war with Iran, but the high-stakes meeting is expected to
include discussions on trade, Taiwan and Iran.
Separately, data released on Wednesday showed that U.S.
producer prices increased more than expected in April, posting
their biggest gain since early 2022.