A 'bruising week' for Sir Keir and 'Order Andrew to give evidence'

Front-page political turmoil in the UK — including predictions of heavy Labour losses in local elections on 7 May, threats of leadership action if the party loses more than 1,500 council seats, and reports the prime minister failed to record a 2025 meeting with Palantir — raises short-term political risk for UK markets. Heightened scrutiny and talk of a leadership challenge increase uncertainty ahead of key votes and a high-profile US state visit, likely boosting domestic market volatility and weighing on investor sentiment for UK-focused assets (represented here by UK 100). Traders may price in greater political risk premium, potentially pressuring the index and sterling until clarity on election outcomes and government stability returns.