The FTSE 100 was down in early trading despite better than expected UK GDP figures and a modest rally in the pound.
Because the earnings of its constituents are heavily weighted overseas, strong sterling is typically a headwind for the index.
“The GDP figures could be characterised as a low-quality beat. If April’s figures were actually a bit better than they looked, May’s look a bit worse when you get past the headline number,” says AJ Bell financial analyst Danni Hewson.
“Certainly, there were clear signs of just how squeezed household budgets are right now and, given how significant consumer spending is in overall economic growth, the risk of recession certainly hasn’t gone away.
“ITV has faced a bruising few months as shareholders reacted negatively to its new streaming venture and concerns about a slowdown in advertising. The last thing it needs is the distraction and potential damage of a regulatory probe but that’s what faces the broadcaster as the competition authority looks into the use of freelancers for sports programming.
“Shipping services business Clarkson continues to do well. It has benefitted from elevated freight rates amid port congestion and disruption linked to the conflict in Ukraine, factors which could be in play for some time to come.”