London blue chips have fallen this morning as the markets react to large rises in government borrowing costs in the US and Europe.
US Treasury bond yields lifted on Monday evening after the Supreme Court paved the way for a second Trump presidency, while in the eurozone borrowing costs lifted on the back of the French far-right taking the majority in the first round of parliamentary elections.
Back in Britain, consumers have been handed a boost after shop prices slowed to their lowest points since October 2021, helped by falls in key food products such as butter and coffee. Food prices came in 0.2% higher in June than the same month a year ago, while the cost of goods on average is down 1%.
Fuel prices have also started to fall, but the RAC believes they are "still too expensive" and is hoping the competition authority and new government can rectify the situation. Petrol prices dropped by 3p to 145p a litre last month, while diesel fell by close to 4p to under 150p.
In company news, Sainsbury's has tumbled around 4% after several of its divisions experienced slowing sales, even though it made market share gains. The UK's second-largest supermarket recorded a 6.2% decline in year-on-year sales at its Argos subsidiary despite boasting the "biggest market share gains of any grocer during the quarter."