Burnham gets his feet under the desk

The new PM is already making waves, on a day when investors are already preoccupied with the conflict in the Middle East, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Burnham begins cabinet appointments

In a move that surprises no one, Rachel Reeves has become one of the early casualties of Burnham’s move into No 10. Investors find themselves having to try and second guess the first wave of moves from the new PM, and hints about flexibility in the government’s fiscal rules are one of the first suggestions of a step change in policy. But with possible social care reform and a raising of income tax personal allowances being mooted, the cost to the state, and ultimately the taxpayer, appears to be stacking up already.

More US-Iran strikes keep markets on edge

The tone for the week has already been set as the US and Iran continue to trade strikes. And now a second waterway closure looms to cause further problems for global markets. While some hints of a return to negotiations helped to continue Friday’s late rally, this has begun to stumble as news of fresh attacks filters through. The next two weeks will be a tussle between conflict news and big-name earnings, and the tug of war between these two is likely to keep volatility elevated.