European equities traded lower on Friday as investors reacted to mounting political uncertainty in the United Kingdom and persistent tensions surrounding the Iran situation.
The pan-European STOXX Europe 600 slipped 0.76%, while Germany’s DAX fell 0.86%. France’s CAC 40 lost 0.79%, and the UK’s FTSE 100 declined 0.70% as of 07:08 GMT.
Starmer Faces Renewed Pressure Inside Labour
Keir Starmer is facing renewed questions over his leadership after a parliamentary seat became vacant, potentially opening the door for Andy Burnham to return to Westminster.
The vacancy followed the resignation of a Labour MP, creating the possibility of a by-election that Burnham could contest. However, analysts noted that Reform UK could pose a significant electoral challenge if a vote takes place.
Trump Ends Beijing Visit With Positive Signals
Donald Trump departed Beijing on Friday, bringing his two-day state visit to China to a close with a ceremonial farewell.
Trump described the trip as “incredible,” highlighting “fantastic trade deals” and progress in discussions concerning Iran. Both Washington and Beijing agreed that the Strait of Hormuz should remain open.
China’s foreign ministry stated that the two leaders had “reached a series of new common understandings” and endorsed a “new vision” for a stable and constructive relationship between China and the United States. Trump also said Xi Jinping is expected to travel to the United States around September 24.
Corporate Highlights
Volkswagen (TG:VOW3) labour representatives reiterated that there would be “no plant closures” in Germany, while signalling openness to defence-related projects and partnerships with Chinese groups as part of efforts to tackle excess production capacity, according to Reuters.
Stellantis (BIT:STLAM) and Dongfeng Motor Group agreed to jointly manufacture Jeep and Peugeot vehicles in China starting in 2027, with total planned investment exceeding $1.2 billion.
Unipol Assicurazioni (BIT:UNI) reported a 15.4% increase in first-quarter net profit to €329 million, supported by strength in its core insurance operations.
Gold Weakens While Oil Advances
Gold prices declined for a fourth consecutive session as a stronger U.S. dollar and reduced expectations for Federal Reserve interest rate cuts weighed on sentiment. Bullion has fallen roughly 2% over the week.
Oil prices moved higher after Trump warned he would not be “much more patient” with Iran. Brent crude has climbed nearly 6% this week.
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