Live: FTSE 100 falters as gilt yields spike

The FTSE 100 has had a disappointing start to the morning, opening on a loss of 0.3 per cent. London’s blue chip index is performing in line with European counterparts – with Germany’s DAX and Italy’s MIB both down.

And the cost of UK government borrowing has spiked, with 30-year gilt yields up 5.71 per cent to the highest level since 1998.

Gold has reached yet another all-time high, now surpassing even the peaks seen in the wake of Donald Trump’s ‘Liberation Day’ tariff announcements in April – when retail investors scrambled to buy the save haven asset.

This follows a surprise reshuffle in Westminster, which offered some heavy hints about the government’s plan to handle the economy ahead of the Autumn Budget.

Starmer has moved significant economic firepower directly into Number 10. Most strikingly, he’s even taken Rachel Reeves’ former deputy Darren Jones and moved him into Downing Street, in a humiliating move for the Chancellor. Editor-in-chief Christian May has more.

Will it work? This remains to be seen. What we do know is that the Prime Minister’s approval rating is at a record low. That’s according to exclusive City AM/Freshwater Strategy polling.

Meanwhile, City AM‘s print edition is back this morning.