The country recorded a surprise contraction in manufacturing activity, due to Covid restrictions. The PMI reading came in at 49.2 – a score below 50 signals a contraction – versus expectations of 50.

In other news, a Daily Telegraph report states that Prime Minister Rishi Sunak is planning to extend the foreign aid spending cut until 2027 to help balance public finances.

Among stocks, Harbour Energy fell 0.7% on worries that a levy on energy profits could be extended to 2028.

The countdown to the Fed meeting has started, with another 0.75% interest rate hike expected on Wednesday. Investors will be watching speeches, looking for clues about the future of the US central bank's monetary policy.

 

Things to read today:

How Russia secretly takes grain from occupied Ukraine (Financial Times)

Brexit red tape puts brakes on UK innovation and EU sales (Guardian)