US inflation hits a three-year high in May

European stock markets are taking a more decisive turn downwards now – the UK’s FTSE 100 has fallen 0.5%. The German Dax is down 0.6% and the French Cac 40 is down 0.3%.

The Europe Stoxx 600 is down 0.4%.

Fears about the Middle East conflict, cost of living and EU border checks are leading people to delay their decisions

• Business live – latest updates

Holiday bookings for early summer have been hit by uncertainty around the conflict in the Middle East and the rising cost of living, the travel industry has said.

Mark Tanzer, chief executive of the UK travel association Abta, said that while people still wanted to go on holiday, the industry was bracing for a difficult summer.

Venerable but struggling UK firm backs deal with Chicago-based Ingredion putting nearly 500 jobs worldwide at risk

• Business live – latest updates

Tate & Lyle has agreed to a £2.7bn takeover by its US rival Ingredion, in a deal that could put hundreds of jobs at risk and represents yet another loss for London’s struggling stock market.

The FTSE 250 business, which makes artificial sweeteners such as Splenda, has agreed to a deal that values it at 615p a share, about 60% above its price before news of a possible takeover emerged.