FTSE 100 starts around 10,490 as investors await UK PMI data

Investors are likely to ease into the second half of the year with a cautious approach, focusing on the upcoming UK Purchasing Managers' Index (PMI) data. Following recent signs of improving economic momentum, today's releases are expected to provide further clues on whether the recovery remains on track. While softer consumer sentiment is likely to weigh modestly on the outlook, parts of business activity are still expected to remain in expansion territory.

Corporate news will also attract attention, with Associated British Foods and retailer Topps Tiles providing trading updates that should offer further insight into current operating conditions and consumer demand.

After Nike struck a more cautious tone in its quarterly results yesterday, investors will now be seeking evidence of how resilient the UK consumer remains. The performance of domestic-facing businesses will provide an important gauge of whether consumer spending continues to hold up despite the challenging macroeconomic backdrop.