Today, energy stocks outperform, tracking higher oil prices due to hopes that Chinese demand will pick after authorities unveiled an economic stimulus a few days ago.

Homebuilders are underperforming, weighed down by a warning from Barratt Developments that it will build about 20% fewer homes in 2024, sending its stock down 5%.

Fresh data showed Britain's economy contracted less than expected in May - by 0.1% - instead of the 0.3% forecast in a Reuters consensus of economists. All sectors contracted except services, which remained flat.  The FTSE 100 was up 0.2% at 9am.

Things to read today:

A global subsidy war? Keeping up with the Americans (Financial Times)

Getting So Much Better, But Not Enough to Stop a Rate Hike (Bloomberg)