Today, investors are trading cautiously ahead of the announcement of Britain's new Prime Minister. Liz Truss is widely expected to be named as Boris Johnson's successor at 11:30am. The blue-chip index was down 1.1% at 9am.

Investors are worried about how the next PM will handle inflation and the looming recession, and how tax cuts promised by Liz Truss could impact prices and the Bank of England monetary policy.

The impact of energy supply issues on Europe's economy is also weighing on sentiment, as Russia extended a halt to the Nord Stream 1 gas pipeline to Europe.

 

Things to read today:

Strains mount in European power market as UK generators call for help (Financial Times)

Markets Scram Warning Over New UK Prime Minister’s Mammoth Task (Bloomberg)

Slump in Sterling and Gilts reveals markets’ fears for the UK (Sunday Times)