UK and European shares are in the red, while oil prices are extending losses as investors expect more supply later in the year.

The FTSE 100 index in London is down 34 points, or 0.4%, while Germany’s Dax and France’s CAC have both lost around 0.3% and Italy’s FTSE MiB has fallen nearly 0.7%.

Derren Nathan, head of equity research at Hargreaves Lansdown, said:

The markets barely blinked at yesterday’s political turmoil, and with just one month to go before the UK electorate heads to the polls, the FTSE 100 opened just a fraction down…

Rishi Sunak must face questions about the fortune he earned at a hedge fund which engineered a deal at the heart of the financial crash, Labour has said, as it prepares to launch its first major attack on the prime minister ahead of the election debates.

The party aims to turn the spotlight on Sunak’s time before politics in the days before the first TV debate between the two leaders, after a week dominated by rows over Diane Abbott’s candidacy. On Sunday, she confirmed she would stand as Labour’s candidate.

Nathan added:

Brent crude is down… to under $78 per barrel following prices cratering to four-month lows yesterday, after Opec+ nations revealed they would gradually phase out production cuts after September. This, and the weaker economic data seen both sides of the pond, may provide some comfort for those on rate-setting committees hoping for an earlier cut to borrowing costs.

Meme stocks have been in the spotlight again, after a post by social media influencer “Roaring Kitty” suggested he had taken a significant position in GameStop. The shares were up as much as 75% over the day but closed up just 21%. This highlights the extreme volatility and risk in trying to catch the timing of these rallies which have no financial substance behind them.

Brent crude has fallen 1.1%, or 88 cents, to $77.48 a barrel, while US light crude has lost 1.5%, or $1.09, to $73.14 a barrel.

The Organisation of the Petroleum Exporting Countries (Opec) and allies led by Russia, a group known as Opec+, on Sunday agreed to extend most of their oil output cuts into 2025 –- but left rom for voluntary cuts from eight members to be gradually unwound from October.

Airbus is negotiating a major sales of more than 100 wide-body A330neo jets to China, with talks gaining momentum since president Xi Jinping visited his French counterpart Emmanuel Macron last month, Bloomberg News reported.

Some of the biggest Chinese airlines are considering buying the upgraded A330 models. The terms are still being discussed and the timing is uncertain.

Good morning, and welcome to our rolling coverage of business, the financial markets, and the world economy.

Vistry Group, one of Britain’s biggest housebuilders, is to sell a portfolio of 1,750 new build homes to the private equity firms Blackstone Real Estate and Regis Group in a £580m deal. The portfolio will be managed by the private rented housing firm Leaf Living, which is backed by funds managed by Blackstone and Regis.

The portfolio, which is concentrated in the south-east of England, consists of 1,750 homes across 36 Vistry developments. The first completions are expected by the end of June, with the majority of homes expected to complete within the next two years.

Vistry is in the process of selling off properties from its housebuilding division as the company moves towards focusing on its partnerships business, which builds affordable housing for government and non-profit partners.

Greg Fitzgerald, chief executive of Vistry, formerly known as Bovis Homes, said:

By working in partnership with organisations like Leaf Living we can maximise the number of high-quality homes we deliver every year. This agreement supports our differentiated business model, with the certainty provided by the pre-selling of homes enabling us to accelerate our build programmes, guarantee work for our supply chain, reduce sales and build costs and create vibrant new communities.

This year we are on track to deliver more than a 10% increase in new home completions, playing a key part in helping to address the UK’s acute housing shortage.

Blackstone has been investing in UK residential property and acquired 2,915 homes for £819m from Vistry in November. James Seppala, head of European real estate at the firm, said:

Institutional private capital can play an important role in providing high quality housing stock across the UK, particularly in the private rented sector which is significantly undersupplied today. Partnerships such as these can meaningfully accelerate the delivery of new homes and help alleviate structural undersupply across the sector.

Retail sales in the UK eked out modest growth last month, despite a strong bank holiday weekend for retailers.

Sales grew by 0.7% year on year in May, against growth of 3.9% in May last year, according to the British Retail Consortium (BRC). Food sales growth slowed to 3.% year on year in the three months to May from 9.6% a year ago. Non-food sales declined by 2.4%, against growth of 0.7% a year ago.

Helen Dickinson, the BRC’s chief executive, said:

Despite a strong bank holiday weekend for retailers, minimal improvement to weather across most of May meant only a modest rebound in retail sales last month. Although non-food sales fell over the course of the month, the long weekend did see increased purchases of DIY and gardening equipment, as well as strong clothing sales. Growth in computing sales reached their highest levels since the pandemic, with many consumers continuing to upgrade tech bought during that period. Retailers remain optimistic that major events such as the Euros and the Olympics will bolster consumer confidence this summer.

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