Starmer Resignation Seen as Negative for UK Assets

Keir Starmer has stepped down as Labour leader, a move markets had been nervously anticipating for weeks. The resignation is described as 'unambiguously negative' for UK assets, as it paves the way for Andy Burnham to take over as Prime Minister.

The political transition introduces uncertainty, with investors now assessing the potential policy shifts under Burnham's leadership. The pound and UK equities may face headwinds in the near term as the market prices in the change.