A deal may have been done between President Biden and Republican Speaker of the House Kevin McCarthy but there was still a sense of unease around the US debt ceiling as markets await sign-off from Congress.
AJ Bell investment director Russ Mould said: “Disquiet from various wings of the Democratic and Republican parties was enough to suggest that the agreement cannot be declared a slam dunk just yet, even if an eventual sign-off is by far the likeliest outcome. The response from Asian stocks was mixed overnight and the FTSE 100 started slightly on the back foot after the bank holiday.
“The continued move higher in shop prices in the UK offered a reminder that inflation remains sticky like glue, though there was a glimmer of hope as the surge in food prices eased just a touch. The pressure rising food costs are causing households was reflected in an apparent Government idea, floated in the press, to introduce voluntary price limits for various staple items.
“The decision of the Issa brothers to twin their EG petrol stations with Asda could pose a fresh competitive threat to Tesco and Sainsbury’s, though both supermarkets traded higher early on Tuesday suggesting investors are relaxed for now.”