Today's news headlines:

‘Johnson clings on after resignations, names Zahawi Chancellor’. UK Prime Minister Boris Johnson faced renewed pressure yesterday as Rishi Sunak and Sajid Javid resigned from the Cabinet. Their thoughts echo the ongoing dissatisfaction with Johnson’s premiership, with Sunak wishing for competent and serious leadership. Nadim Zahawi will be appointed the new Chancellor of the Exchequer, and Steve Barclay will take on the role of health secretary. These latest resignations could galvanise the Tory rebels as failure to deliver on policy objectives further pressures the PM. (Bloomberg)

‘Oil steadies below $100 after plunging on recession concerns’. Oil has steadied around $100 per barrel this morning, with Goldman Sachs calling the recent sell-off in the commodity ‘overdone’. Recessionary fears have pushed prices lower despite demand remaining robust and inventory levels depleting. Analysts at UBS see another bounce to the upside for oil as OPEC fail to deliver on supply, and oil output from Libya remains at just a third of the levels seen one year ago. (Bloomberg)

Today

Risk-off sentiment has returned to markets, with Asian stocks falling overnight and the US Dollar Index reaching a 20-year high. European shares have opened in positive territory this morning while US futures point lower.

Events

UK Construction Purchasing Managers’ Index (June): 9:30AM
Eurozone Retail Sales m/m (May): 10:00AM
US Services PMI (June): 2:45PM
US JOLTS Job Openings: 3:00PM

Interbank rates:

GBP/USD – 1.1978
GBP/EUR – 1.1672
EUR/USD – 1.0264
USD/CAD – 1.3016

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