London midday: FTSE pares gains, gilt yields jump on reports of Streeting leadership challenge

(Sharecast News) - London stocks had pared gains by midday on Wednesday as gilt yields jumped on reports that Wes Streeting is set to resign as Health Secretary and trigger a leadership challenge against Keir Starmer.

The FTSE 100 was just 0.1% firmer at 10,278.27, while sterling was 0.2% lower against the dollar at 1.3511, falling a little further after the Streeting reports. Brent crude was up 0.3% at $108.05 a barrel.

Neil Wilson, UK investor strategist at Saxo Markets, said: "It follows an earlier meeting this morning between Streeting and PM Keir Starmer. The Times chief political correspondent, Aubrey Allegretti, tweeted that Streeting is 'going to go for it' tomorrow.

"The report produced an immediate reaction in edgy gilt markets with the 30-year jumping more than 5 basis points to 5.80% again whilst the 10-year broke above 5.125%...both now trading close to flat after opening a bit lower this morning.

"It's clear that bond markets are very sensitive to headlines but we have not had confirmation yet as to any move to trigger a contest. However, as detailed this morning it seems increasingly clear that Starmer cannot hold on and I expect a move to happen once the King's Speech is out of the way."

Away from UK politics, the US and Iran remained locked in a stalemate, while President Trump headed off to meet Xi Jinping in China.

Richard Hunter, head of markets at Interactive Investor, said: "The imminent meeting between the US and China will undoubtedly focus on the conflict and any potential diplomacy which the Chinese may be able to offer given its relationship with Iran. Of equal importance could be discussions around the current tariff truce, although issues remain in place on rare earths."

In equity markets, Intertek surged as the inspection, product testing and certification group said it was minded to recommended a £9.4bn takeover by Swedish private equity firm EQT.

Heavily-weighted miners Antofagasta, Anglo American, Rio Tinto and Glencore were among the top gainers on the FTSE 100 as copper prices rose.

Babcock International also advanced as it posted a jump in annual revenues but confirmed profits had been hit by a one-off charge on a contract to build five ships for the Royal Navy.

Marshalls rose as it backed its full-year expectations while acknowledging the potential for volatility due to the Iran war.

On the downside, housebuilder Vistry tumbled after saying it expects first-half profits to be "significantly" lower than last year and paused its share buyback to focus on cash generation and cutting debt.

Spirax also lost ground as it reiterated full-year guidance despite "the weak industrial production environment".

Market Movers

FTSE 100 (UKX) 10,278.27 0.13%

FTSE 250 (MCX) 22,507.96 0.19%

techMARK (TASX) 5,886.51 -0.14%

FTSE 100 - Risers

Intertek Group (ITRK) 5,655.00p 6.70%

Metlen Energy & Metals (MTLN) 39.36p 5.07%

Anglo American (AAL) 4,033.00p 3.80%

Antofagasta (ANTO) 4,102.00p 3.79%

Rio Tinto (RIO) 8,161.00p 3.19%

Fresnillo (FRES) 3,717.00p 2.53%

Glencore (GLEN) 583.70p 1.81%

BT Group (BT.A) 238.60p 1.70%

Smurfit Westrock (DI) (SWR) 2,995.00p 1.56%

Airtel Africa (AAF) 420.40p 1.55%

FTSE 100 - Fallers

Flutter Entertainment (DI) (FLTR) 7,120.00p -2.33%

Spirax Group (SPX) 7,000.00p -2.30%

Imperial Brands (IMB) 2,774.00p -1.98%

Entain (ENT) 515.20p -1.97%

IMI (IMI) 2,684.00p -1.90%

Relx plc (REL) 2,414.00p -1.71%

Weir Group (WEIR) 2,402.00p -1.56%

International Consolidated Airlines Group SA (CDI) (IAG) 391.60p -1.43%

Marks & Spencer Group (MKS) 303.30p -1.33%

Sainsbury (J) (SBRY) 300.10p -1.21%

FTSE 250 - Risers

AEP Plantations (AEP) 2,205.00p 10.72%

Gamma Communications (GAMA) 940.00p 5.15%

Raspberry PI Holdings (RPI) 702.50p 3.33%

BlackRock World Mining Trust (BRWM) 1,030.00p 3.31%

Polar Capital Technology Trust (PCT) 673.50p 2.90%

Helios Towers (HTWS) 245.80p 2.85%

Endeavour Mining (EDV) 4,945.00p 2.74%

Allianz Technology Trust (ATT) 683.00p 2.71%

Templeton Emerging Markets Inv Trust (TEM) 312.00p 2.63%

Oxford Nanopore Technologies (ONT) 121.00p 2.63%

FTSE 250 - Fallers

Vistry Group (VTY) 293.40p -9.82%

Avon Technologies (AVON) 1,516.00p -4.98%

Hays (HAS) 32.38p -3.00%

Applied Nutrition (APN) 206.75p -2.82%

Pagegroup (PAGE) 128.60p -2.65%

easyJet (EZJ) 350.80p -2.58%

Shawbrook Group (SHAW) 312.25p -2.42%

B&M European Value Retail (BME) 160.40p -2.38%

Wizz Air Holdings (WIZZ) 958.50p -2.24%

WH Smith (SMWH) 459.60p -2.13%