On 9 February 2026, London’s FTSE 100 opened stronger even as UK politics entered a turbulent phase. The benchmark stock index edged higher in early trading, lifted by gains in key sectors and positive global cues. At the same time, Prime Minister Sir Keir Starmer faced pressure from his own MPs after his most senior aide, chief of staff Morgan McSweeney, resigned amid controversy over a high‑profile appointment.
McSweeney’s departure has sparked intense debate in Westminster and raised fresh questions about leadership stability at 10 Downing Street. Investors are now watching markets closely for signs of volatility tied to political risk and sterling fluctuations.
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This unique mix of market optimism and political uncertainty sets the stage for a dramatic week in UK business and politics.
FTSE 100 Today: Market Moves amid Starmer Turmoil
FTSE 100 Market Performance and Key Trends
On 9 February 2026, the FTSE 100 showed mixed performance as London markets opened with modest gains before slipping slightly, reflecting growing political uncertainty in the United Kingdom.
According to Reuters, the index edged down 0.13% around mid‑morning, weighed by weaker banking stocks such as NatWest, whose shares fell after announcing a £2.7 billion deal to acquire Evelyn Partners. UK bank stocks overall were down about 1.2%, illustrating sector‑specific pressure within the broader market.
Despite this, broader European indices were higher in early trading, and gains in housebuilders and mining stocks helped support sentiment before the dip. The more domestically‑focused FTSE 250 also rose 0.6%, highlighting divergence within UK benchmarks. Meanwhile, global influences, including Japan’s stock market strength after an election, also shaped trading dynamics.
Technical analysis from Meyka shows the FTSE 100 trading with bullish momentum and an overall Buy signal, though prices sit near resistance levels and short‑term pullbacks remain possible. Momentum indicators like RSI and MACD are positive but suggest some caution as the index consolidates.
Why are UK Markets Sensitive to Politics Right Now?
What Triggered the Political Turmoil?
Political risk in the UK intensified after Morgan McSweeney, chief of staff to Prime Minister Sir Keir Starmer, resigned on 8 February 2026 over his role in advising on the controversial appointment of Peter Mandelson as UK ambassador to the United States. McSweeney acknowledged responsibility for that decision, which has since become a major headline after newly released U.S. Department of Justice documents highlighted Mandelson’s past ties to convicted sex offender Jeffrey Epstein.
The resignation came as Starmer prepared to face his MPs in a closed meeting to address rising criticism within his own party. Several Labour MPs have publicly questioned his judgment and leadership direction, with calls from some for Starmer to consider stepping down.
Has the UK Government Been Shaken?
The political fallout is broader than a single departure. Financial Times reports that Sterling and UK government bonds weakened as markets priced in higher leadership risk. The pound slipped against major currencies, and 10‑year gilt yields climbed amid investor nervousness.
Another senior aide, Director of Communications Tim Allan, also resigned hours after McSweeney’s exit, compounding concerns about internal instability at 10 Downing Street.
Political commentators and analysts now see this as Starmer’s most critical leadership challenge since coming to power with a large majority in 2024. A sustained crisis could alter market pricing if it leads to prolonged uncertainty or a leadership contest.
How are Markets Reacting to the Political Crisis?
Currency and Bonds
Sterling has softened as markets adjust to heightened political risk. Reuters reports the pound slid against the euro and U.S. dollar amid speculation on leadership continuity, while bond markets priced in higher yields as investors sought compensation for political uncertainty.
Equities and Sector Impact
While the FTSE 100 showed resilience early in the session, investor focus shifted to sectors sensitive to domestic economic conditions and regulatory policy. Banks and financials, already under pressure from NatWest’s stock slide, faced added headwinds as risk aversion rose. Mining and housebuilder stocks provided some support, but gains weren’t strong enough to offset declines.
Analysts say markets are less focused on gossip and more on what political instability means for future policy delivery. A credible leadership stance may ease risk pricing, while prolonged fractures could widen risk premia across gilts, GBP, and domestically exposed equities.
Expert Market & Analyst Insights
Market analysts point to the importance of clarity from Downing Street. ING economists highlight that currency and bond markets are likely to remain sensitive to leadership signals from Sir Keir Starmer’s team. They forecast potential shifts in GBP exchange rates if internal pressure intensifies.
Technical indicators from Investing.com also show a bullish stance for the index overall, with strong moving averages and momentum signals labeled as Strong Buy, though short‑term overbought conditions warrant caution.
Collectively, analysts suggest that resolving political tension and re‑establishing policy direction will be key for sustaining investor confidence.
What Investors Should Watch Next for UK Stock Market?
Upcoming Data and Events:
Investors are watching several key indicators this week: UK retail sales, GDP figures, and Bank of England commentary. These releases could shift expectations on interest rates and economic momentum.
Political Signals:
Starmer’s meeting with MPs and any public communication on leadership stability will directly impact market sentiment. Indicators of a sustained internal push for change may amplify volatility.
Risk Indicators:
- FX movements: GBP volatility around key economic data dates
- Bond yields: Changing gilt curve as risk narratives evolve
- Equity rotation: Domestic versus global stock exposure performance
Longer term, clarity on leadership and UK fiscal policy could boost confidence, while prolonged uncertainty may see risk assets retrace gains.
Final Words
The FTSE 100 is navigating a complex mix of market optimism and political risk. On 9 February 2026, stocks showed resilience early on, but investor focus quickly shifted toward uncertainty in Westminster. Banking stocks, currency swings, and leadership questions underline how political events can influence markets.
Clearing the political fog, stabilising Sterling, and re‑establishing policy momentum will be key to sustaining gains. With crucial economic data on the horizon, markets are set for a decisive period. Investors should keep watch on both political developments and economic indicators as the week unfolds.
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Frequently Asked Questions (FAQs)
On 9 February 2026, the FTSE 100 rose slightly. Gains came from mining and housebuilding stocks. Global markets were positive, which helped London shares. Investors also watched NatWest’s banking news.
Morgan McSweeney resigned as Starmer’s chief of staff on 8 February 2026. He stepped down over advice given on Peter Mandelson’s controversial appointment. His exit caused political discussion in Westminster.
Yes, UK politics is affecting markets on 9 February 2026. Leadership pressure on Starmer and resignations caused mild volatility. Sterling and bank shares showed short-term reactions to political uncertainty.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
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