The FTSE 100 is set to fall this morning as hopes of a Middle East peace deal were dashed again, while bond markets are set for another volatile day as the Prime Minister’s future hangs in the balance.
Starmer faces an explosive Cabinet meeting this morning after he was reportedly told by ministers to set out a timetable for his resignation. It came after more than 70 MPs called for him to go.
His reset speech on Monday failed to convince both his MPs and the bond market yesterday, with ten-year gilts trading at 5.006 per cent, while 30-year gilts reached 5.67 per cent.
Centrist Wes Streeting is widely expected to mount a challenge, which will be of some relief to markets who fear a lurch to the Left with Andy Burnham, should he make it back to Westminster.
However, further uncertainty in the face of rising inflation and interest rate expectations is likely to push the cost of government borrowing higher.
Meanwhile, oil prices climbed to $105 a barrel on fears of a return to a full escalation of the war. Donald Trump said the ceasefire with Iran was ‘unbelievably weak’ and on ‘massive life support’.
Asian markets were mixed, with the Nikkei up 0.4 per cent, Hong Kong’s Hang Seng Index flat and India’s Sensex down 1.1 per cent.
Greggs sales rise on new menu boost
FTSE 100 to open in the red
