Stock markets wobbled at the start of the week as the United States and Iran agreed to halt recent hostilities in the Gulf and renew diplomatic talks.
The two nations clashed over the Strait of Hormuz before officials confirmed that negotiations are expected to resume on Tuesday, though markets regard any ceasefire as precarious.
Brent crude edged back above $72 per barrel overnight on Monday, recovering from four-month lows as traders assessed the fragile diplomatic developments.
Asian markets fell in response to the uncertainty, with Japan’s Nikkei leading declines and closing down around one per cent.
On the domestic political front, Labour PM-in-waiting Andy Burnham is poised to deliver his first major set-piece speech following his victory in the Makerfield by-election.
The address is expected to offer an early glimpse into what a Burnham-led government could look like, with devolution of power away from London forming the centrepiece of his pitch.
Burnham will say that a 10-year plan will focus on “reindustrialisation” and housebuilding as twin drivers of improved living standards across the country.
He will also say that decision-making will be “pushed to regions and local communities”, replacing the “centralised, top-down model with locally driven economic growth.”
The approach echoes former Prime Minister Boris Johnson’s “levelling up” mission, which sought to redirect investment and opportunity towards the North of England and other overlooked regions.
Despite the significance of the speech, attention across City trading floors and Westminster desks remains firmly fixed on who Burnham will appoint as Chancellor, and what their tax and spending plans might involve.
The question of fiscal policy under a Burnham government is considered the most consequential unknown for businesses and investors assessing their exposure to UK political risk.
Elsewhere in the news, the London Stock Exchange has drawn up a worst-case scenario for a potential US listing flight risk, reflecting ongoing concerns about the competitiveness of London as a financial centre.
Volkswagen’s difficulties in China have deepened, with Europe’s biggest carmaker weighing the possibility of cutting as many as 100,000 jobs as it confronts a prolonged sales slump in its most important market.
Apple is reportedly eyeing a blacklisted Chinese supplier to help ease an ongoing chip shortage, a move that could draw fresh scrutiny from regulators in Washington.
Heatwave conditions have meanwhile driven a surge in demand for aircon stocks, while the Financial Conduct Authority is looking to check the power of investment trust boards following the Saba uproar.