Yesterday, the UK market and Europe were lower due to political instability following far-right gains at the European elections and the announcement of snap elections in France. Euro and Sterling fell against the US Dollar. The FTSE 100 closed the day 0.4% lower.

Today, the index opened 0.3% higher, buoyed by signs of a cooling labour market. However, it retreated to just below zero later in the morning. The UK's unemployment rate for April rose to 4.4% from 4.3%, contrary to expectations of stability, which strengthens the case for a rate cut. Wages excluding bonuses grew by 6%, slightly below the forecast of 6.1%. Traders now see a nearly 60% chance of a rate cut by the Bank of England in September.

Among individual stocks, Rio Tinto dropped after announcing the purchase of Mitsubishi Corp's stake in Boyne Smelters. Anglo American was down 1% following a rating downgrade by Morgan Stanley. Conversely, Oxford Instruments surged 11% after reporting better-than-expected full-year results.

Raspberry Pi Holdings announced its IPO pricing at 280 pence per share, expecting a market capitalization of £541.6 million.

Investors are focused on the Federal Reserve's upcoming policy meeting, with expectations that the Fed will maintain current interest rates. The Federal Open Market Committee (FOMC) meeting begins on Tuesday, with a decision expected on Wednesday. 

Things to read today: