Lunchtime market roundup: Stocks mixed as PM resigns; eyes on Burnham

Stock prices were mixed at Monday midday in London, with the yield on the UK 10-year gilt a bit lower than on Friday but still higher than on Thursday, as UK Prime Minister Keir Starmer announced his resignation, with Andy Burnham widely seen as his successor.

The FTSE 100 index was up 26.02 points, 0.3%, at 10,389.29. The FTSE 250 was down 109.69 points, 0.5%, at 23,091.04, and the AIM all-share was up 1.18 points, 0.2%, at 797.01.

The Cboe UK 100 was up 0.3% at 10,31.14, the Cboe UK 250 was down 0.6% at 19,720.63, and the Cboe small companies was down 0.4% at 18,375.17.

Iran’s senior envoys left talks in Switzerland on Monday after a marathon negotiating session with the US, state media reported, as mediators claimed progress towards a definitive US-Iran deal.

Mediators Pakistan and Qatar said the negotiators reached agreement on a ‘roadmap towards reaching a final deal within 60 days’, with technical talks to continue for the rest of the week at the Swiss resort of Burgenstock.

‘Tireless Pakistani and Qatari mediation has delivered major progress to end Lebanon War,’ Iran’s Foreign Minister Abbas Araghchi wrote on X. ‘Oil and petrochem exports are waived, blockade lifted, some frozen assets released, and major reconstruction & development plan launched for Iran. 1st real test: Lebanon deconfliction cell,’ he wrote.

‘Markets could see heightened volatility during the process as this won’t be a simple handshake to get it done,’ AJ Bell’s Russ Mould noted.

Brent oil was quoted at $79.23 a barrel at midday in London on Monday, down from $80.21 late Friday.

Meanwhile, in the UK, Keir Starmer said he will give his successor his ‘full and unequivocal support’ as he confirmed he will be stepping down as leader of the Labour Party. Mould called his resignation ‘a seismic change in UK politics’.

Nominations will open for the position on July 9. The Commons summer recess is due to start on July 16.

Starmer said he had ‘heard the answer’ of his party as to whether he was best placed to lead them into the next general election and ‘accepts that answer with good grace’.

Andy Burnham, who won the Makerfield by-election last week, is widely tipped to succeed Starmer and has confirmed that he will stand for the Labour leadership. Burnham has the support of former health secretary Wes Streeting, who has confirmed that he will not run for party leadership.

The EU said it was ‘reassessing’ plans for a summit with Britain on post-Brexit ties on July 22 after Starmer’s resignation speech.

European Commission spokeswoman Paula Pinho said Brussels and London were looking into ‘the opportunity of still holding the summit... and we will take it from here’.

The yield on the UK 10-year gilt was 4.80% around midday on Monday, down from 4.84% around the London equity markets close on Friday after Burnham’s by-election win, but still up from 4.76% at the close on Thursday.

‘There is potential for gilt yields to go even higher if markets worry about who might become the next chancellor and if there will be radically different policies under a new prime minister,’ Mould commented.

The pound was quoted at $1.3239 midday Monday, higher compared to $1.3227 on Friday. Against the euro, sterling rose to €1.1550 from €1.1532 a day prior.

The euro stood lower at $1.1458, against $1.1469. Against the yen, the dollar was trading higher at JP¥161.71 compared to JP¥161.26.

In European equities on Monday, the CAC 40 in Paris was down 0.7%, while the DAX 40 in Frankfurt was down 0.2%.

Stocks in New York were called lower on Monday, after being closed all day Friday. The Dow Jones Industrial Average was called down marginally, the S&P 500 index down 0.2%, and the Nasdaq Composite marginally lower.

The yield on the US 10-year Treasury was quoted at 4.49%, widening from 4.46% on Thursday. The yield on the US 30-year Treasury was quoted at 4.92%, widening from 4.90%.

Gold was quoted at $4,205.39 an ounce on Monday, higher against $4,152.32 on Friday.

On the FTSE 100 in London, Babcock continued to lead the laggers, down 7.0%, after its full-year results included a profit hit.

Additionally, the defence major reiterated its expectations for the current financial year, and for the medium-term future.

‘Various governments have pledged to boost defence spending which has led certain investors to believe the earnings pipeline for defence contractors is vast, and there is now an element of disappointment,’ Mould said.

On AIM, Proteome Sciences was up 9.3%.

The life sciences company has won a ‘further significant clinical contract connected to its target engagement/chemoproteomics platform,’ and expects it to be the precursor to a new clinical trial programme later in 2026.

eEnergy dropped 40%.

The net zero energy services provider said that following a ‘detailed’ review and significant reduction in pipeline revenue, it now expects 2026 revenue of around £32.0 million, up from £19.0 million for the prior year but down from previous guidance of £38.0 million.

It also now sees 2026 adjusted earnings before interest, tax, depreciation and amortisation of £1.7 million, cut from the previous forecast of £4.5 million and lower than adjusted Ebitda of £2.2 million for 2025.

Still to come on Monday’s economic calendar is Canada’s consumer price index inflation reading.

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