UK shares continued their decline this morning after data showing that inflation remains sticky in Britain fuelled worries that the Bank of England may need to be more hawkish.

Consumer inflation remained steady at 8.7% in May, while economists expected a decline. Investors are now mostly forecasting a 50-bps rate hike on Thursday, instead of the previously-expected 25-bps increase.

Source: Berenberg, ONS, BoE

Among stocks, Halfords rose 5.1% after it said it expects profit growth in the year-ahead, adding that it is planning to grow its bikes and car parts' market.

Things to read today:

Slowdown in junk-rated loan market hits US corporate borrowing plans (Financial Times)

BOE Seen Boosting Pace of Hikes After Shock Inflation Reading (Bloomberg)