LONDON MARKET MIDDAY: FTSE pares gains amid UK PM Keir Starmer turmoil

Wed, 13th May 2026 12:17

(Alliance News) - Stock prices in London were little changed by midday Wednesday, having pared earlier gains as political drama in Westminster unsettled sentiment.

The FTSE 100 index was up 8.83 points, 0.1%, at 10,273.93. The FTSE 250 was down 5.64 points, marginally lower, at 22,459.79, and the AIM all-share was up 4.97 points, 0.6%, at 815.63.

The Cboe UK 100 was up 0.2% at 1,020.88, the Cboe UK 250 was down 0.1% at 19,380.41, and the Cboe small companies was up 0.2% at 18,297.19.

Front and centre in London was the latest twist in the crisis surrounding Prime Minister Keir Starmer.

Reports from The Times suggested Health Secretary Wes Streeting is "preparing to resign" after a meeting with the prime minister that lasted less than 20 minutes.

Streeting is said to be ready to trigger a leadership contest, with allies claiming he has made clear he is "going to go for it". They indicated he could resign on Thursday and formally mount a challenge for the Labour leadership.

The confrontation took place ahead of the State Opening of Parliament, where King Charles III was addressing parliament to outline the government's legislative agenda as Starmer fights to save his premiership.

The King's Speech included more than 35 bills and draft bills, covering areas such as immigration, the NHS and police reform, alongside a potential route to nationalising British Steel.

The prospect of a formal leadership challenge has injected fresh uncertainty into markets already rattled by rising bond yields earlier in the week.

The UK 10-year gilt was quoted at 5.094% at midday on Wednesday, down slightly from 5.103% at Tuesday's close. Despite an intraday low of 5.054%, it has traded as high as 5.115%

Sterling recovered slightly after losing ground on Tuesday. The pound was quoted at USD1.3518 midday Wednesday, compared to USD1.3505 on Tuesday. Against the euro, sterling rose to EUR1.1542 from EUR1.1517 a day prior.

The euro stood at USD1.1712, down from USD1.1729, while the dollar traded at JPY157.81 versus JPY157.73.

In European equities on Wednesday, the CAC 40 in Paris was down 0.4%, while the DAX 40 in Frankfurt was up 0.6%.

Data showed that eurozone economic growth slowed as expected in the first quarter of 2026.

According to Eurostat, gross domestic product in the single currency area rose 0.1% on-quarter, in line with the preliminary estimate and down from 0.2% growth in the fourth quarter.

On an annual basis, the eurozone economy expanded 0.8% in the first quarter, slowing from 1.3% growth in the final quarter of 2025. Employment growth also moderated, with the number of employed persons rising 0.1% on-quarter, compared with 0.2% growth previously.

Back in London, Intertek topped the FTSE 100, up 6.7%, after backing the approach from private equity firm EQT following what it described as "significant" shareholder engagement. Miners also helped lift the blue-chip index, supported by firmer metal prices.

On the FTSE 250, Vistry Group plunged 12% after warning of weaker half-year profit and pausing its share buyback programme. Avon Technologies followed lower, down 7.2%, amid weakness in its order book.

Among smaller caps, Mercantile Ports & Logistics soared, more than doubling from 0.43 pence to 1.24 pence, after appointing former CIA official Marty Martin to its board and signalling plans to explore opportunities outside India. The port operator said Martin previously served as CIA chief of station for the Near East Division.

Stocks in New York were called mixed. The Dow Jones Industrial Average was called down 0.3%, the S&P 500 up 0.2% and the Nasdaq Composite up 0.8%.

In Asia, geopolitical tensions also remained in focus. US President Donald Trump sparked concern in Taipei and among regional allies by saying he would discuss American arms sales to Taiwan with Chinese President Xi Jinping when the two leaders meet in Beijing this week.

Ahead of departing Washington on his first visit to China since 2017, Trump said he intended to raise the issue with Xi, breaking with long-standing precedent of not consulting Beijing on US arms exports to Taiwan.

Meanwhile, the Middle East conflict continued to cast a long shadow over markets. On day 74 of the conflict, Trump said he did not think about Americans' financial situation as he pushes for a deal with Iran.

After describing the ceasefire as on "massive life support" earlier in the week, aides suggested Trump is now more seriously considering resuming combat operations in Iran. The US president is heading to China, where he said he will have a "long talk" with Xi about Iran, although he downplayed the need for Beijing's help.

Earlier, the US Energy Department raised its forecast for gasoline prices, with retail prices now expected to average USD3.88 per gallon this year, up from last month's forecast of USD3.70.

The yield on the US 10-year Treasury was quoted at 4.46%, unchanged from Tuesday, while the yield on the US 30-year Treasury rose to 5.03% from 5.02%.

Brent oil was quoted at USD107.98 a barrel at midday in London on Wednesday, compared with USD108.07 late Tuesday.

Gold was quoted at USD4,695.54 an ounce, up from USD4,663.87 on Tuesday.

Still to come on Wednesday's economic calendar are US producer price inflation, EIA crude oil stocks and the IEA oil market report.

US PPI for April is due at 1330 BST, with consensus expecting a 4.9% year-on-year increase, up from 4.0% in March.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Commodities Forex Market News