Monday Morning Markets: UK Stocks Cautious as US-Iran Uncertainty Lingers, Starmer Resigns

UK and European markets have started the new week on a hesitant note… 

The FTSE 100 is flat, the FTSE 250 has slipped 0.3%, while on the continent the DAX has fallen 0.2%, the CAC 40 has lost 0.4%, and the Euro Stoxx 50 is flat. 

It is a subdued open heading into the week.

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Starmer Resigns

The mood is tempered by weekend developments in the UK and on the US-Iran front. 

Firstly, UK Prime Minister Kier Starmer has resigned less than two years after he won a landslide election victory. Starmer said he has accepted that the Labour party does not believe he is best placed to lead the country.

Andy Burnham is seen as the clear favourite to become the next Prime Minister.

US-Iran Uncertainty

Meanwhile, despite last week’s memorandum of understanding, Iran said over the weekend that the Strait of Hormuz was once again closed due to continued attacks in Lebanon, raising fresh doubts about the deal’s durability. 

However, reports state that the first round of talks was encouraging.

Oil markets have slipped slightly on Monday morning, with Brent down 1.7%.

EasyJet Climbs on Takeover Interest; Ocado Hit by CEO Fears

The FTSE 250 tells two very different stories. 

EasyJet (+3.21%) has gained after Castlelake’s 625p-per-share takeover approach was revealed, although rejected by the board, with the proposal nonetheless underscoring the carrier’s underlying value and seemingly pulling IAG (+1.61%) higher on broader airline optimism. 

Ocado (-4.6%) heads in the opposite direction, tumbling on reports raising concerns over CEO succession, unsettling investors already cautious about the company’s trajectory. 

Saga (-8.09%) is the mid-cap index’s heaviest faller.

FTSE 100 Movers

Metlen Energy & Metals (+2.75%) tops the blue-chip risers, with Pershing Square Holdings (+1.86%) also advancing. 

Babcock (-3.63%) is the sharpest faller, giving back Friday’s gains and more. BAB is one of the names flagged in our latest weekly watchlist, alongside Berkeley Group and Wise, all due to report in the coming days. 

Mondi (-2.47%) and JD Sports (-2.46%) also retreat, while Ceres Power (+4.20%) is the FTSE 250’s standout riser.