Today, the FTSE 100 is down 0.4%, and the pound weakened, as investors assess the consequences of Boris Johnson's resignation yesterday, which paves the way for a succession race among the Tories.

Johnson will stay in office until his successor is appointed, which will be a complicated process, which no clear favorite yet.

He said his government will not try to implement new policies while the Conservatives choose a new leader, fueling worries over paralysis.

This comes as a survey showed that British employers slowed their hiring via recruitment agencies in June. The Recruitment and Employment Confederation's (REC's) measure of permanent staff hiring fell sharply to 54.8 from 59.2 in May.

Investors are also awaiting U.S. jobs data later today that could offer clues on how important the Fed's next rate hike will be.

 

Things to read today:

Recession Speculation comes for Commodities (FT)

Boris Johnson’s Meltdown May End Sterling’s (WSJ)