FTSE 100 fell Tuesday as investors reacted to mounting political uncertainty in the United Kingdom
The benchmark index lost 0.4%, while the mid-cap FTSE 250 dropped 1.2%.
Prime Minister Keir Starmer rejected growing calls for his resignation during a tense political standoff.
Starmer defended his position Monday, warning party members against a divisive and destabilizing leadership contest.
Analysts said investors remain uneasy as uncertainty clouds the government’s political direction and economic outlook.
Broader global concerns also pressured sentiment after stalled diplomatic talks increased fears of prolonged regional instability.
UK banking shares suffered heavy losses, led by declines in Metro Bank and Barclays.
Real estate and aerospace sectors also weakened, reflecting a broader risk-off mood across European markets.
