FTSE 100 Live: Stocks dip; Mahmood tipped as Chancellor

The UK has received fresh economic growth data this morning which has put GDP expansion at a sluggish 0.1 per cent for the month of May.

The services sector – which contributes more than 80 per cent of total economic output – grew 0.3 per cent against steep falls in other parts of the economy. 

Manufacturing contracted 0.8 per cent and production 0.5 per cent.

“While all three main sectors grew over the three months (to May), the slight growth in GDP in May was driven by services alone, with production and construction both falling back,” Liz McKeown, director of economic statistics at the ONS, said.

The fresh data comes ahead of the first ceasefire agreement between Trump and Iran coming into effect.

But the agreement has since being dropped in a move that threatens to reignite economic turmoil across the globe.

Brent crude – the international benchmark for oil prices – fluctuated around the $85 per barrel mark, staying close to one-month highs on Thursday morning after the US ramped up its military campaign against Iran.

The US forces carried out fresh airstrikes that targeted Iranian missile storage facilities and launch sites near the strategic waterway.

Asked whether he would give a new deadline for a peace deal, Trump said: “I ‌don’t like giving ​deadlines, but they pretty ⁠much know, they know ​the story… ​they ​better ​behave.”

The markets are digesting the news that current home secretary Shabana Mahmood is set to be appointed as the UK’s next Chancellor under new Prime Minister Andy Burnham.

One City boss told City PM that Mahmood would go down well in the Square Mile, though very little is known about her fiscal policies.

We’ll be bringing you the latest market updates and analysis.