Stock Market Impact: FTSE 100 rose 0.3% to close higher; sterling firmed to $1.3437 (+0.2%). German DAX +0.5% and French CAC 40 +1.2% also rose.
Construction Sector: UK Construction PMI fell to 38.2 in May, down from 39.7 in April, lowest since May 2020 and 17 months below the neutral 50 level, marking the fastest contraction outside the pandemic since March 2009.
Inflation Pressures: Input price inflation recorded its fastest pace since June 2022; supplier delays were most widespread since December 2022.
Diplomatic Developments: Iran Deputy Foreign Minister Kazem Gharibabadi said at least 50% of frozen Iranian assets would be released immediately upon any agreement signing. Other geopolitical notes include statements from Quds Force commander Esmail Ghaani, Hezbollah’s rejection of a US‑backed ceasefire, and a UN peacekeeper casualty.
Corporate Updates: Mitie Group reported 10.5% revenue growth to £5.62 bn and a record bidding pipeline of £31.7 bn. CMC Markets lifted its net operating income forecast by up to 22% to £460‑£480 m after posting a record annual profit, citing extreme volatility in tariffs, wars and commodities.
Automotive Market: UK new‑car registrations in May rose ~7% YoY, the strongest since 2019; battery‑electric vehicles accounted for 27% of new registrations, taking the YTD share to 24% against a 33% target.
Political Context: US President Donald Trump criticised a House war‑powers vote (215‑208) that passed a measure defying the White House; Secretary of State Marco Rubio said Iran had not given final sign‑off on enriched‑uranium surrender or reopening the Strait of Hormuz; Iran’s foreign minister Abbas Araghchi noted no tangible progress in talks.
