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UK stocks muted as Starmer leadership crisis rattles investor sentiment
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UK stocks muted as Starmer leadership crisis rattles investor sentiment
May 13, 2026 5:00 AM

(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.

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