(For a Reuters live blog on U.S., UK and European stock
markets, click or type LIVE/ in a news window)
May 13 (Reuters) - UK stocks were little changed on
Wednesday, underperforming the European benchmark, as domestic
political uncertainty and questions over Prime Minister Keir
Starmer's future weighed on sentiment.
The blue-chip FTSE 100 index edged 0.03% higher as
of 11:07 am GMT, while the midcap FTSE 250 dipped 0.1%.
Investors, already unsettled by the Middle East impasse and
rising oil prices, are contending with fresh uncertainty over
the government's leadership, with a stream of headlines casting
doubt on Starmer's ability to stay at the helm.
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.
Auto stocks fell 2.3%, while industrial
miners rose 3%. Information analytics company
Relx ( RELX ) was the biggest loser on the FTSE 100, down 2.4% as
concerns over disruption from AI lingered.
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.