China is redirecting shipments through south-east Asia to bypass higher duties in the US, prompting a surge in trade with the ASEAN bloc and renewed caution among global exporters.

Major investment firms seized the opportunity to buy up government bonds during a brief market dip sparked by speculation over the Chancellor’s position, while the Opposition leader reinforced backing for her to steady the political and economic landscape.

Gilts and the pound declined on renewed worries about fiscal oversight after a tense parliamentary exchange, with only lukewarm support from Starmer at PMQs and speculation over the chancellor’s future, while both camps deny any rift.

Starmer has scaled back proposed welfare changes to avoid a Commons defeat, diffusing a potential internal revolt whilst grappling with a multi-billion funding shortfall.