Keir Starmer has resigned as Prime Minister of the United Kingdom, becoming the seventh leader to step down in a volatile ten-year period. Sterling and gilt prices fell immediately on the news, though the FTSE 100—which is up 4.3% year to date and 18.5% over the past year—showed limited immediate damage because the resignation was widely anticipated. Goldman Sachs Research projects UK GDP growth of 1.5% in 2026 and expects the Bank of England to cut rates to 3% by year-end, supporting capital investment. Among UK equity ETFs, the iShares MSCI United Kingdom ETF has $3.60 billion in net assets and gained 16.1% over the past year, the Franklin FTSE United Kingdom ETF has $859.8 million in net assets and rose 16.8%, and the iShares MSCI United Kingdom Small-Cap ETF has $39.77 million in net assets and advanced 4.1%.
HSBC Holdings PLCStarmer's resignation triggers immediate fall in sterling and gilt prices.