Overnight, Tesla posted disappointing results as it reduced its margin to get market share, while Netflix released better-than-expected numbers.

The FTSE 100 was down 1.0% at 9am today, as government bond yields rose. The UK 10-year climbed to 4.8%, while the US 10-year reached 4.9% and is dangerously close to 5%.

Following in the footsteps of German Chancellor Olaf Scholz and Joe Biden, British Prime Minister Rishi Sunak travelled to Israel in an attempt to smooth over a conflict that is increasingly polarizing positions between the Hebrew state and Arab countries. The explosion which caused a massacre in a Gaza hospital has further deteriorated the climate, with both sides passing the buck as to the origin of the catastrophe.

Federal Reserve Chair Jerome Powell is due to give speech today at 4pm GMT, with investors looking for clues about the rate hike path.

Among stocks, pest control company Rentokil dropped 14% after warning about softer demand in North America.

Things to read today:

How is the US economy managing to power ahead of Europe? (Financial Times)

Short-Sellers Sink One of Europe’s Hottest Stocks (Bloomberg)

Fed Faces a Big Call on Rates. Powell Will Offer Some Clues (Barron's)