The FTSE 100 declined by more than 0.5% on Monday, lagging behind other major European indices. Investors weighed the implications of Andy Burnham’s appointment as the UK’s new prime minister, with focus now shifting to his selection for Chancellor.
In commodity markets, oil prices surrendered earlier gains as traders balanced rising geopolitical risks in the Middle East against renewed diplomatic efforts. Brent crude slipped back below $88 per barrel after briefly trading near $90. Reports that mediators had proposed a pause in US–Iran hostilities helped to temper concerns over Yemen’s Iran-backed Houthi rebels, who have threatened maritime traffic from Saudi Arabia.
Among blue-chip stocks, Shell fell 0.8%, HSBC dropped 0.9%, AstraZeneca and Rio Tinto each lost 1.5%, GSK declined 1.8%, Unilever slipped 0.6%, and Rolls-Royce eased 0.4%.
