Key facts
- Stock markets wobbled as the US and Iran agreed to halt recent hostilities and renew talks.
- Talks over the Strait of Hormuz dispute are expected to resume on Tuesday.
- Brent crude recovered to above $72 per barrel.
- Asian markets, led by Japan's Nikkei, experienced declines.
- Andy Burnham is set to deliver a speech detailing his government's plans, focusing on devolution and reindustrialization.
- Market attention is also on Burnham's potential Chancellor and their fiscal policies.
Stock markets showed signs of wobbling on Monday as the United States and Iran agreed to de-escalate recent hostilities in the Gulf and recommence discussions regarding their dispute over the Strait of Hormuz. Officials indicated that talks are anticipated to restart on Tuesday, though markets perceive any cessation of hostilities as fragile.
Overnight, Brent crude oil prices edged back above $72 per barrel on Monday, recovering from a four-month low. Concurrently, Asian markets experienced a downturn, with Japan's Nikkei index leading the decline, falling approximately one percent.
In domestic political news, Labour's anticipated Prime Minister, Andy Burnham, is scheduled to deliver his first significant policy speech today following his victory in the Makerfield by-election. This address is expected to provide an early indication of his government's potential direction.
Burnham is expected to outline a 10-year plan centered on devolving power away from London, with a particular emphasis on reindustrialization and increasing housebuilding to improve living standards. He is also set to advocate for decision-making to be pushed to regions and local communities, proposing a new political system to replace the current centralized model with one driven by locally generated economic growth, echoing former Prime Minister Boris Johnson's "levelling up" agenda.
Despite Burnham's speech, the focus across City trading floors and in Westminster remains on the identity of Burnham's chosen Chancellor and their proposed tax and spending strategies.