British Prime Minister Starmer Resigns
British Prime Minister Keir Starmer announced his resignation on Monday after less than two years in office.
Speaking outside 10 Downing Street, Starmer said every decision he has taken has been about putting the country first.
His decision to step down followed mounting pressure from his own Labour Party.
Matters were made worse, following the decisive by-election win by his rival, Andy Burnham, to claim a parliamentary seat in North- West England.
Polls say the 63-year-old Labour Party leader and former lawyer is deeply unpopular with voters after a series of policy missteps and scandals.
In 2024, Starmer won the biggest parliamentary majority for Labour since 1997 after 14 years of Conservative-led government.
London’s domestically focussed FTSE index slipped to a one-week bogged down by political uncertainty after Starmer’s announcement.
The internationally focussed FTSE 100 index slipped 0.1 percent by 09:30 GMT, while the midcap FTSE 250 dropped 0.7 percent.
Greater Manchester mayor Andy Burnham stands as the top candidate for Prime Minister, but investors say a change in leadership is unlikely to change conditions a lot.
“Britain has been going in the wrong direction and I don’t really think, unfortunately, that any replacement for Keir Starmer, is going to be much different,” said David Morrison, senior market analyst at Trade Nation.
Rate-sensitive household goods and home-construction stocks fell by more than 1 percent and were among top sectoral decliners while the pound eased 0.1 percent versus the US dollar.
The next candidate will be scrutinised over fiscal policy plans at a time when concerns over debt-backed public spending has sent the yield on the benchmark 10-year Gilt to its highest since 2008.
