On the macroeconomic front, the ISM manufacturing indicator for June, published yesterday afternoon in the US, came out even worse than expected, at 46 points compared with 46.9 points in May. This is the lowest level in three years. A reading below 50 is synonymous with a contraction in activity. What conclusions can we draw from this? That inflation will probably continue to fall in the US and that industrial employment will suffer. The stock market is focusing on the effect on prices, as the labor market continues to show impressive resilience.

The United States celebrates its national holiday today, so the session is a little quieter than usual. The FTSE 100 opened flat, with homebuilders underperforming after JPMorgan cut its price target on many stocks from the sector.

J Sainsbury's fell 1.5% after posting disappointing quarterly results.

Things to read today:

A World of Cronyism and Corruption (Project Syndicate)

Why are interest rate rises not taming inflation? (Financial Times)

China Takes the Trade Fight to Europe, Targeting the Green Transition (Bloomberg)