FTSE 100

Key insight

Oil has pulled back sharply to $82.3 from last week's $90+ highs — a fast-moving development that reduces inflationary pressure but signals demand-growth fears; meanwhile UK political transition risk remains unpriced as markets await Burnham's Chancellor pick and fiscal stance.

The FTSE 100 has broken below the key 10,500 round-number support on a combination of UK political uncertainty under new PM Andy Burnham and persistent US-Iran geopolitical risk driving a global risk-off mood.

Main risk

UK Political Transition — New PM Burnham & Unknown Fiscal Stance

Andy Burnham became UK PM on 20 July, sacking Chancellor Rachel Reeves; until his Chancellor's fiscal agenda is confirmed, gilt yields and sterling will remain volatile, directly weighing on FTSE 100 sentiment.