FTSE 100 lifted by energy stocks

The FTSE 100 closed 1.3% higher at 10,323.8 points, while the FTSE 250 closed 0.07% lower after declining as much 0.7% earlier in the day

UK’s blue-chip FTSE 100 rose on Monday, lifted by energy stocks tracking higher crude oil prices, while the more domestically focused ​midcap index was subdued amid concerns about inflation and Prime Minister Keir ‌Starmer’s future.

The FTSE 100 closed 1.3% higher at 10,323.8 points, while the FTSE 250 closed 0.07% lower after declining as much 0.7% earlier in the day.

Earlier in the day, Starmer’s ​deputy said he would not set out a timetable for his departure, ​defying calls to quit from his party’s lawmakers. Starmer said he ⁠remained focused on doing his job.

The prime minister has dug his heels in ​despite intense pressure following a set of poor local election results earlier this ​month.

Last week, Greater Manchester Mayor Andy Burnham said he would seek to contest a parliamentary seat becoming vacant after a colleague decided to stand down, paving the way for him to challenge ​Starmer for the Labour leadership.

Investors are concerned that Burnham could usher in a ​period of more government spending and borrowing, straining Britain’s already stretched public finances.

The political centre ‌of ⁠gravity is likely to shift left. And yes, there is pressure to adapt the fiscal rules. But politicians across the spectrum are presumably acutely aware there are limits, said James Smith, developed markets economist, UK, at ING.

With shipping through the ​Strait of Hormuz still ​disrupted, inflation worries ⁠have gripped markets, particularly as oil prices stay elevated.

Brent crude futures advanced 1.6% as worries over supply disruption from the Iran ​war receded. Energy stocks added 2.9%.