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The FTSE 100 closed higher on Thursday, shrugging off the UK’s ongoing political drama, while the price of oil cooled in light of positive reactions to the much-anticipated US-China summit. The FTSE 100 closed up 47.58 points, 0.5%, at 10,372.93. The FTSE 250 ended up 299.70 points, 1.3%, at 22,828.07, and the AIM All-Share fell just 0.09 of a point at 817.12. The Cboe UK 100 ended up 0.7% at 1,030.68, the Cboe UK 250 was 1.6% higher at 19,737.01, and the Cboe Small Companies Index ended down 0.3% at 18,291.68. In the UK, Health Secretary Wes Streeting quit his post, paving the way for a possible leadership challenge against embattled Prime Minister Keir Starmer. Starmer, who led his Labour Party to victory in 2024, is fighting to save his job after poor local election results last week. Four junior ministers have resigned, and more than 80 Labour MPs have urged him to quit, but he has vowed to cling on. Streeting criticised the ‘drift’ at the top of government and told the PM it is ‘clear’ he will not lead Labour into the next election. While stopping short of announcing a bid for the top job, Streeting urged Starmer to allow the ‘best possible field of candidates’ to run to replace him in Downing Street. The UK bond market took the news in its stride with the yield on 10-year gilts trading at 5.00%, cooling from 5.07% the day before. The pound fell against the dollar to $1.3480 on Thursday afternoon from $1.3505 on Wednesday. But against the euro, sterling climbed to €1.1549 from €1.1542 on Wednesday. Investors were also weighing encouraging UK economic growth data for the first quarter. UK gross domestic product rose 0.6% in the three months to March, accelerating from revised growth of 0.2% in the fourth quarter of 2025 and in line with the FXStreet-cited consensus. Lloyds Banking analysts commented: ‘That represents a clear step-up from the subdued performance at the end of last year. However, the timing of the data is important. Much of the strength predates the escalation in the Iran conflict, meaning the latest figures likely overstate the current pace of activity just as the outlook has become more uncertain.’ A lower oil price gave support to bond and equity markets, reflecting positive sentiment about the US-China summit. Investors are hoping that Donald Trump’s visit to China results in progress in Washington’s efforts to reach a peace agreement with Iran, leading to the reopening of the Strait of Hormuz. The White House said that Trump and his Chinese counterpart, Xi Jinping, held a ‘good’ meeting in which they agreed that the Strait of Hormuz ‘must remain open’. Iran has largely blocked shipping through the vital waterway, through which a fifth of the world’s oil and natural gas normally passes, since the outbreak of war with the US and Israel on February 28. ‘The two sides agreed that the Strait of Hormuz must remain open to support the free flow of energy,’ the White House said. Brent crude for July delivery was trading at $104.92 a barrel on Thursday, down compared to $107.33 at the time of the equities close in London on Wednesday. The euro traded lower against the greenback, at $1.1677 on Thursday, from $1.1715 on Wednesday. Against the yen, the dollar was trading at JP¥158.14, higher than JP¥157.81. In Europe on Thursday, the CAC 40 in Paris ended up 0.9%, and the DAX 40 in Frankfurt advanced 1.3%. In New York, the Dow Jones Industrial Average was up 0.8%, the S&P 500 rose 0.9%, and the Nasdaq Composite was 1.0% higher. Cisco stormed 15% higher after it announced, after Wednesday’s US market close, better-than-expected third quarter results and fourth quarter guidance. The San Jose, California-based digital communications technology company raised expectations for AI sales and orders, pointing to ‘broad-based record-high demand for our technology.’ The yield on the US 10-year Treasury narrowed to 4.46% on Thursday from 4.50% on Wednesday. The yield on the US 30-year Treasury fell to 5.01% from 5.05%. In London, Legal & General gained 6.2% as the Financial Times suggested that potential bidders, including insurers and alternative asset managers, had been ‘running the rule’ over the business. But Chief Executive Antonio Simoes told the FT that he was not considering a break-up or sale and was ‘100% focused on executing my strategy.’ ‘There’s no discussions or anything else going on,’ he added. Nonetheless, one current L&G insider told the FT that ‘it feels like we‘re being dressed up for a sale.’ Relx added 1.4% after hosting a seminar focused on its Risk Business Services division, which primarily looked at Fraud & Identity solutions, around 16% of Risk and Business Analytics sales. JPMorgan analyst Daniel Kerven said management reiterated its expectation of continued high single-digit underlying organic revenue growth for the division for a decade or more, and that revenue will grow faster than costs. But 3i Group slumped 13% after disappointing sales figures from its key investment, Dutch discount retailer Action. The London-based private equity investor said that at the end of week 19, to May 10, Action’s year-to-date like-for-like sales growth rate was 2.4%, slowed from 6.8% a year prior. Furthermore, consumer caution persisted in France, and traffic declined in Germany amid a deterioration in the situation in the Middle East at the end of March. Citigroup analyst Andrew Lowe said Action’s year-to-date week 19 LFL sales growth implies nil year-on-year growth between weeks 12 and 19, with flat LFL sales growth in France and Germany. While Dan Coatsworth, head of markets at AJ Bell, said 3i has ‘paid the price’ for being too reliant on a single holding. ‘For a long time, Action was seen as invincible, one of the fastest growing retailers in Europe and the reason why investors were happy to pay a large premium to own 3i Group shares. That goodwill has now disappeared,’ he added. Elsewhere, the FTSE 250 saw two possible bids emerge for Tate & Lyle and Spire Healthcare. London-based food and beverage ingredient provider Tate & Lyle leapt 45% after it confirmed a takeover approach from Ingredion, worth up to 615 pence per share, or £2.74 billion in total. US peer Ingredion later confirmed its 595p per share non-binding, indicative all-cash offer, which implies a total valuation of £2.65 billion. Additionally, Tate & Lyle shareholders would have the right to receive a final dividend of up to 13p for the year ended March 31, as well as an interim dividend of up to 7p for the six months ended in September. London-based private healthcare provider Spire, meanwhile, soared 49% as it backed a takeover proposal from its second-largest shareholder, Toscafund Asset Management. Spire said Toscafund made a non-binding proposal of 250 pence per share in cash, valuing the company at £1.01 billion. Gold traded at $4,688.75 an ounce on Thursday, down slightly from $4,690.48 on Wednesday. The biggest risers on the FTSE 100 were Legal & General, up 15.30p at 263.80p, Imperial Brands, up 110.00p at 2,866.00p, Admiral Group, up 122.00p at 3,294.00p, British American Tobacco, up 155.00p at 4,962.00p and Whitbread, up 69.00p at 2,340.00p. The biggest fallers on the FTSE 100 were 3i, down 309.00p at 2,112.00p, Burberry, down 79.50p at 1,083.00p, Babcock International, down 39.60p at 975.40p, Tesco, down 11.50p at 450.70p and Coca-Cola HBC, down 92.00p at 4,172.00p. Friday’s global economic calendar has US industrial data and the New York empire state manufacturing index. Friday’s local corporate calendar has trading statements from student accommodation provider Unite and building materials distributor Grafton. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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