Dow breaks through 22,000, boosted by Apple - as it happened

• Wall Street hits new peaks after iPhone maker's results
• UK construction grows at weakest rate in 11 months
• Pound highest against the dollar since September
• US jobs growth weaker than expected in July

5.34pm BST

Over in the US the Dow Jones Industrial Average may be hitting new heights, but European markets are not in the same buoyant mood. In the UK the FTSE 100 has fallen back, not helped by disappointing results from Standard Chartered and Rio Tinto. European shares continued to slip on the strength of the euro, itself partly due to the weak dollar which has helped push up the Dow. The final scores in Europe showed:

4.08pm BST

Bob Doll, chief equity strategist at Nuveen Asset Management, told Bloomberg TV:

Hopefully 22 becomes a floor rather than a ceiling....there is cash on the sidelines, returns on that are low, bonds are sitting there doing not much, and earnings are coming through. So stocks are the story.

The Dow broke 22,000 for the first time ever, surging at the market openhttps://t.co/s1DKdwd7qL pic.twitter.com/sCVmklX5BM

3.44pm BST

Oil prices are sliding after new figures showed that US crude stocks fell by less than expected last week.

According to the Energy Information Administration, crude stockpiles dropped by 1.53m barrels to 481.89, lower than the 2.96m decline expected by analysts. But gasoline stocks fell by a higher than forecast 2.52m barrels.

3.07pm BST

Back with the Dow, and here are the biggest movers so far (and the Apple effect is evident):

3.00pm BST

And here's another thing which may knock markets back.

According to a professor at the Schulich School of Business, the first total solar eclipse in 38 years, set for August 21, could be a bad day for stock markets.

2.52pm BST

The rally may not last, however. Neil Wilson, chief market analyst at ETX Capital, said:

It's not the fastest 1,000 point run - it's taken a lot longer than the 24 sessions it took to get from 20k to 21k - but it's indicative of a bull market speeding to a top. The Dow is now up more than 11% this year, while the tech-heavy Nasdaq is up more than 18%. But August is usually not a great month for stocks - up 5 times in the last 20 - so there is caution about how long this can be sustained beyond earnings season euphoria.

It's not just Apple - earnings are delivering across the board for US equities. Whatever is happening in Washington is not bothering the stock market. It is hitting the dollar of course. A lack of any fundamental moves in bond spreads suggests the recent dollar swoon is largely politically-driven. A weaker buck is good for US stocks and increasing doubts about the Fed's capacity to raise rates quickly is also supporting equities. The punch bowl is still half full.

2.50pm BST

The Dow has been hitting new highs despite the turmoil in Washington, with President Trump unable to enact his healthcare reforms while facing continuing questions over Russian involvement in the election, not to mention the shock departures of several of his key staff.

It is recent positive set of company results which has taken investors' minds off the Trump turmoil, with Apple shares providing the final flourish with an opening 5% rise to a record $159 after its figures.

Investors are completely immune to all the drama which is taking place over in Washington because if you look at the performance of the Dow, it appears everything is hunky dory. Although one can never underestimate the possibility of the president getting impeached but again that could mean more favourable trade relations with other countries and things moving back to normal. Thus, the impeachment trade itself could be positive for the equity market after a knee jerk reaction as the Trump trade would unwind.

In earnings, it is all about Apple. The firm comfortably topped its forecast and produced stellar numbers for its revenue and profit. The big news was about the production of iPhone 8, the flagship product for the firm will hit the market on time with no issues around production.

2.30pm BST

The Dow Jones Industrial Average has broken through the 22,000 barrier for the first time, boosted by a host of positive corporate earnings reports, the latest being Apple.

2.02pm BST

If the Dow does hit 22,000 for the first time today, Apple won't be the only one taking the credit...

Stock Market could hit all-time high (again) 22,000 today. Was 18,000 only 6 months ago on Election Day. Mainstream media seldom mentions!

1.29pm BST

The ADP employment report is out and has come in below forecasts. Private sector employment increased by 178,000 in July, weaker than the 185,000 predicted by economists.

However, the number for June was revised up sharply to show a 191,000 increase in jobs, compared with an earlier estimate of 158,000.

1.17pm BST

Traders at spread betting firm IG are predicting the Dow Jones will open just shy of the 22,000 mark when Wall Street opens:

US Opening Calls:#DOW 21996 +0.17%#SPX 2476 +0.02%#NASDAQ 5930 +0.61%#IGOpeningCall

12.54pm BST

Time for a market update.

Major markets across Europe are in the red, with the FTSE 100 extending losses, and now down 29 points at 7,395.

12.21pm BST

Investors are braced for the latest decision on interest rates from the Bank of England's Monetary Policy Committee, which will be delivered at noon tomorrow.

Although markets have brought forward expectations for the timing of the first rate hike since July 2007, economists polled by Reuters don't think tomorrow will be the day.

Related: Bank of England edges closer to increasing UK interest rates

11.37am BST

The pound is holding on to earlier gains against the dollar, up 0.3% at $1.3234, helped by a broadly weaker dollar.

Sterling is now at a near 11-month high:

11.08am BST

Eduardo Gorab, property economist at Capital Economics, says the July construction PMI was "underwhelming".

Here is the data in chart form:

10.47am BST

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, says the weaker than expected construction PMI shows Brexit uncertainty is weighing on commercial building:

The sharp fall in the construction PMI in July suggests that the renewed slowdown recorded by the official data in the second quarter won't be short-lived.

The decline in the PMI primarily reflected a big drop in the commercial activity index to its lowest level since immediately after the EU referendum. Commercial clients reportedly delayed decisions due to worries about the economic outlook and elevated political uncertainty.

Weakened economy activity, a lacklustre housing market and appreciable economic and political uncertainties threaten to be a damaging combination for the construction sector over the coming months. Meanwhile, construction companies are currently still being squeezed by elevated input costs.

House building activity could be pressurised by extended slow housing market activity and subdued prices amid weakened consumer fundamentals.

10.07am BST

The detail of the July construction PMI survey shows reveals a sharp slowdown in commercial building such as offices as shops.

It has been a mixed month for the sector, so this dip in the reading is not a major surprise. The hope is that it is a blip rather than the beginning of a downward trend.

Results from commercial contractors show margins are holding up reasonably well and improving. Meanwhile, any nervousness about pipelines has eased for many firms by the awarding of contracts for HS2.

9.38am BST

The Markit/CIPS construction PMI has come in a lot weaker than expected.

The headline index combining output, orders and employment in the sector fell to 51.9 in July, from 54.8 in June. Anything above 50 signals growth.

July data reveals a growth slowdown in the UK construction sector, mainly driven by lower volumes of commercial development and a loss of momentum for house building.

Worries about the economic outlook and heightened political uncertainty were key factors contributing to subdued demand. Construction firms reported that clients were more reluctant to spend and had opted to take longer in committing to new projects.

9.28am BST

The dollar is under further pressure this morning, as political drama in the US continues to unfold.

The dollar's loss is the pound's gain, with sterling nearing an 11-month high.

Related: Trump 'weighed in' on son's Russia statement, White House confirms

Dollar continues post Scaramucci declines - World First Morning Update August 2nd - https://t.co/pg24yizslj pic.twitter.com/Ab1ktxh2G7

9.01am BST

Apple shares hit a fresh record hight on Tuesday after the US tech giant announced it had sold 41m iPhones in the last three months.

Investors were also reassured as Apple suggested rumours of a delay to the launch of the iPhone 8, due in September, were incorrect.

Related: Apple hints iPhone 8 won't be delayed as company's shares hit record high

8.53am BST

The FTSE 100 is off 19 points this morning, with commodity stocks dominating the list of the biggest fallers:

8.37am BST

Markets in Europe are mixed this morning. Shares have failed to get any major boost from the Apple-led tech rally that drove Wall Street higher on Tuesday.

The scores so far in Europe:

8.15am BST

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

We have some upbeat predictions for the UK economy this morning, as the National Institute of Economic and Social Research publishes its latest set of forecasts.

We are not talking about a rapid return to higher interest rates, but signalling that process - even if it takes five to seven years - will help banks rebuild their balance sheets and create a healthier financial system.

Related: UK economy is about to surge back to life, says leading forecaster