The survival of Boris Johnson in a confidence vote of Conservative MPs is met by a shrug on the markets on Tuesday.
Sterling was stable, the FTSE 100 was broadly unchanged and, while political turmoil might eventually start to spook investors, for now the focus remains firmly on inflation.
At the margin, the pound has eked out some gains on the assumption Johnson’s weakened position might lead to a less strident policy in relation to the EU, particularly on the Northern Ireland protocol.
“The pressure on households from rapidly rising prices is reflected in weak retail sales data for May and figures from Barclaycard showing spending on essentials like food, fuel and utilities bills is going up rapidly,” says AJ Bell investment director Russ Mould.
“This will send a chill down the spine of any consumer-facing businesses which are dependent on discretionary spending.
“In this context sportswear retailer JD Sports could well do without the disruption of another tussle with the Competition and Markets Authority.
“Fresh from the probe into its ill-fated takeover of Footasylum, which was a contributory factor in the departure of long-standing boss Peter Cowgill, the regulator has put the company on the back foot over fixing the price of sales of Rangers FC replica kit.
“The size of the provision to cover any resulting liabilities is modest but, nonetheless, this is an unwelcome distraction as the business looks to reset in the wake of Cowgill’s exit.”