London close: Starmer resignation, oil price slump lifts stocks

22nd Jun 2026 16:13

(Sharecast News) - UK stocks rose strongly on Monday as political uncertainty eased following the resignation of prime minister Keir Starmer, while oil prices continued to drop.

The FTSE 100 finished 0.7% higher at 10,437.85, snapping two days of losses, with banking, mining and airline stocks among the best performers.

"Clearly, prime ministerial resignations are good for the FTSE 100. The index is enjoying that rarest of sessions at present, where it outperforms US tech stocks. This comes on a day when the pound continues to recover too, and while the FTSE 250 lags behind in the red, it has at least managed to trim its losses," said Chris Beauchamp, chief market analyst at IG.

"The signs are now that the successor to Keir Starmer will be in power in less than a month, which at least minimises the uncertainty for investors."

In a brief statement outside 10 Downing Street, Starmer said he has accepted his party's wishes "with good grace" and has decided to step down as leader.

Starmer said he would ask the Labour Party's national executive committee to set out a succession timetable, with nominations opening on 9 July and completed by the summer recess which begins on 16 July. In the case of a contest, this would ensure a new leader is in place before parliament returns in September.

Former health minister Wes Streeting confirmed that he would not be running against Burnham, saying instead that he was backing the former Greater Manchester Mayor, who announced earlier his intention to stand for PM.

UK bonds gained as a result, with the yield on a 10-year Gilt down 3.6 basis points at 4.81%, easing after a climb higher in recent days.

Also helping sentiment on equity markets on Monday was another sharp drop in the price of oil after Qatar and Pakistan said the US and Iran have agreed on a roadmap to reach a final deal in 60 days. Brent was down 3.7% at $77.58 a barrel, hitting levels not seen since the end of February.

In a joint statement following talks between the two in Switzerland, the mediators said the US and Iran would continue technical talks throughout the week and establish a high-level committee to oversee the mediation process.

Banks lead the gains

Banks were the top performers, with NatWest, Lloyds and Barclays all up as investors mulled the prospect of a leadership change at Number 10.

Mining stocks also benefited from increased risk appetite, with Fresnillo, Rio Tinto, Anglo American and Glencore making decent gains.

Also higher were airlines easyJet and IAG as the prospect of lower fuel prices lifted the cost outlook for the carriers.

On the FTSE 250, Ocado was under the cosh on a report the board is sounding out candidates to replace its co-founder CEO Tim Steiner following a weak share price performance. In a very brief statement, Ocado said its chief executive and the board "continually engage in long-term succession planning and regularly engage with potential candidates".

Market Movers

FTSE 100 (UKX) 10,437.85 0.72%

FTSE 250 (MCX) 23,197.01 -0.02%

techMARK (TASX) 5,801.31 -0.50%

FTSE 100 - Risers

Lloyds Banking Group (LLOY) 109.20p 4.65%

NATWEST GROUP (NWG) 663.00p 4.44%

Barclays (BARC) 516.00p 3.40%

Whitbread (WTB) 2,462.00p 3.27%

Metlen Energy & Metals (MTLN) 41.96p 2.74%

British American Tobacco (BATS) 4,446.00p 2.51%

3i Group (III) 2,259.00p 2.45%

Marks & Spencer Group (MKS) 358.70p 2.34%

Tesco (TSCO) 449.30p 2.30%

Computacenter (CCC) 4,304.00p 2.28%

FTSE 100 - Fallers

Babcock International Group (BAB) 984.40p -5.21%

JD Sports Fashion (JD.) 82.66p -3.14%

Burberry Group (BRBY) 1,102.50p -2.82%

Pershing Square Holdings Ltd NPV (PSH) 3,810.00p -2.21%

Relx plc (REL) 2,328.00p -2.14%

BAE Systems (BA.) 1,811.00p -2.03%

Antofagasta (ANTO) 3,956.00p -1.98%

London Stock Exchange Group (LSEG) 8,278.00p -1.97%

BT Group (BT.A) 192.50p -1.64%

Weir Group (WEIR) 2,416.00p -1.39%

FTSE 250 - Risers

Ceres Power Holdings (CWR) 676.50p 3.36%

Pacific Horizon Inv Trust (PHI) 1,252.00p 3.13%

Energean (ENOG) 717.00p 3.09%

easyJet (EZJ) 518.00p 2.78%

Pan African Resources (PAF) 109.20p 2.63%

Hammerson (HMSO) 351.80p 2.57%

Drax Group (DRX) 757.00p 2.51%

Quilter (QLT) 191.80p 2.13%

Fidelity Emerging Markets Limited Ptg NPV (FEML) 1,562.00p 2.09%

Big Yellow Group (BYG) 872.50p 2.05%

FTSE 250 - Fallers

Hays (HAS) 30.08p -11.11%

Pagegroup (PAGE) 103.10p -9.88%

Ocado Group (OCDO) 170.60p -5.95%

WH Smith (SMWH) 388.60p -5.82%

HGCapital Trust (HGT) 377.00p -5.75%

Globaldata (DATA) 80.70p -5.28%

Aston Martin Lagonda Global Holdings (AML) 39.30p -4.47%

Workspace Group (WKP) 331.00p -3.83%

Syncona Limited NPV (SYNC) 96.20p -3.80%

Seraphim Space Investment Trust (SSIT) 193.00p -3.74%