FX.co ★ FTSE 100 Falls for 3rd Session as Political Uncertainty Grows

The FTSE 100 slipped on Monday, heading for a third straight session of losses as investors weighed the implications of UK Prime Minister Keir Starmer’s resignation. Starmer will stay on as caretaker prime minister until a successor is chosen, having pledged to oversee an orderly transition, with a new leader expected by September.

The announcement has intensified attention on Andy Burnham’s potential leadership bid and the policy agenda he might pursue if he replaces Starmer, while other contenders are also expected to emerge over the summer. Homebuilders came under pressure amid worries about possible shifts in housing policy, given Burnham’s past calls for greater government intervention in the sector. Shares in Barratt Redrow, Taylor Wimpey and Persimmon each fell by around 2%.

Among heavyweight constituents of the index, Unilever slipped 0.9%, Rolls-Royce declined 1.2% and BAE Systems dropped 1.3%. By contrast, energy majors moved higher, with Shell up 0.8% and BP gaining 0.4%.