EU leaders meet in Brussels to discuss top jobs - as it happened

The process gets underway to fill the top jobs at key EU institutions including the European Central Bank

• Macron and Merkel at odds over EU top jobs
• UK mortgage approvals hit two-year high

3.03pm BST

British investors returned to their desks after a bank holiday and European parliamentary elections, but trading on FTSE 100 continued to have something of a half-term break feel, with London's blue-chip index gaining 0.2% at the time of writing.

Other major European indices recovered early losses to be roughly flat at the time of writing, although Italy's FTSE MIB remained down by 0.3%, amid concerns that the country's government - led by far-right deputy prime minister Matteo Salvini - could rebel against EU budget restrictions.

The EU election does not represent a significant change for European stock markets, particularly at the smaller end of the market cap scale. Despite the rise of potentially antagonistic populist voices in the EU, there is no clear desire for a break-up of the bloc, although the result may represent a risk of disruption to the traditional party system at a national level.

2.33pm BST

Wall Street has gained at the open as investors return from holiday to a shortened trading week.

The S&P 500 rose by 0.13% to 2,829 points, while the Dow Jones industrial average rose by 0.14% to 25,621 points. The tech-heavy Nasdaq composite index rose by 0.22% to 7,653 points.

2.25pm BST

It could be a long night for EU watchers. The contenders for the job jobs at the head of a new European parliament may be lined up, but there is some hardcore diplomacy to get through before we have white smoke on who will lead the EU's institutions.

With the top job at the European Commission up for grabs, parliamentarians are wrangling over the process, and how lead candidates - "Spitzenkandidaten" - from each pan-European grouping are chosen.

STATEMENT: Mr Macron's party and ALDE said:

"At this hour, no candidate for the presidency of the Commission has secured a majority in the European Parliament.

1.55pm BST

As we approach the US opening bell it looks like being a muted return on Wall Street following the Memorial Day closure.

S&P 500 futures pointed to a small bump of 0.04% at the time of writing, while Dow Jones industrial average futures gained 0.14% and Nasdaq 100 futures gained 0.17%.

1.44pm BST

Walgreens Boosts Alliance, the US owner of Boots, has put 200 stores under review for possible closure in the next two years, Sky News reports.

1.38pm BST

Here's the reason that NMC Health is enjoying today: an upgrade to profit guidance for the United Arab Emirates-based (but London-listed) private hospitals provider.

NMC upgraded its profits guidance after setting up a joint venture with the Saudi Arabian state pension fund.

1.19pm BST

The FTSE 100 has bumped up in the last half hour, with the mining contingent making the running at the top of the index.

12.48pm BST

Over in Greece the stock market has shown a remarkable rise on the back of renewed prospects of the centre right New Democracy party assuming government when snap polls are held in the coming weeks.

In a sign of investor optimism, the stock market rose by more than 6% on Monday* while yields on 10-year bonds have fallen to historic lows of 3.1 % - not seen since Greece joined the eurozone in January 2002.

12.30pm BST

Alastair Campbell, Tony Blair's former communications director, has been expelled from the Labour party for voting Liberal Democrat in the European elections, he has said.

Campbell said on Twitter: "Sad and disappointed to receive email expelling me from uklabour - particularly on a day leadership finally seems to be moving to the right place on Brexit, not least thanks to tactical voting by party members, including MPs, councillors and peers who back peoplesvote-uk."

Related: Alastair Campbell says he voted for 'remain party' in EU elections

12.19pm BST

Flybe chief executive Christine Ourmiires-Widener will step down on 15 July, the airline has announced, after the sale of the business to a consortium led by Virgin Atlantic.

Flybe will appoint a new chief executive to take over before her departure.

12.01pm BST

Let's have a quick look at European stock markets as we reach the middle of the London trading session.

The FTSE 100 is the best performer of the major European indices, with shares flat thanks mainly to a strong day for the mining contingent.

11.30am BST

Mario Draghi, the man credited with saving the euro in 2012 by declaring he would do "whatever it takes" to preserve the single currency, will stand down as president of the European Central Bank when his term comes to an end in October.

Here are some of the favourites to replace him:

10.50am BST

The pound hasn't moved much in today's trading session, still firmly below $1.27 and slightly down against the euro:

10.46am BST

Bert Colijn, senior eurozone economist at the Dutch bank ING, says the eurozone survey suggests weaker growth for the second quarter, despite the pick up in sentiment:

The improvements were mainly led by improved optimism about the months ahead for both industry and services. This is not because of improved new orders though, which still declined in May. Industry data was poor in general as the recent production trend dropped significantly and so did employment expectations. This seems in line with a modestly weaker GDP growth rate in Q2 than Q1.

10.34am BST

Economic sentiment in the eurozone was better than expected in May, rebounding after 10 successive monthly falls.

The European commission's indicator rose to 105.1 from 103.9 in April, beating expectations of no change.

Overall #Eurozone #economic sentiment improved in May from 32-month low in April as #consumer confidence rose to a 6-month high while #industrial sentiment came off April's lowest level since Oct 2013. #Services sentiment up but declines in #retail (marginal) & #construction https://t.co/KqUbTA0odi

10.08am BST

Jennifer Rankin, the Guardian's Brussels correspondent, brings this report:

Theresa May will return to Brussels for a special European Union dinner summit this evening, but Brexit is not on the menu.

10.03am BST

Five-a-side football pitch operator Goals Soccer Centres has appointed forensic accountants to investigate its accounting after it revealed a likely tax underpayment, the company announced this morning. My colleague Jasper Jolly reports:

Goals, which counts retail tycoon Mike Ashley's Sports Direct among its top shareholders, announced in March that it had misdeclared its VAT bill over several years.

9.45am BST

The number of mortgages approved by British banks hit the highest level in more than two years in April according to the trade body, UK Finance.

Banks approved 42,989 mortgages last month, up from 40,564 in March and the highest since February 2017.

9.34am BST

The Swedish economy grew by 0.6% in the first quarter, double the rate forecast by economists and faster than the eurozone's 0.4% growth.

David Oxley at Capital Economics, says:

The breakdown shows that exports of goods and services rose again in quarterly terms in Q1, benefiting from the rebound in the eurozone economy at the start of the year.

However, a stronger showing from imports means that net trade was broadly neutral. There were positive signs for domestic demand too. Household consumption grew at its fastest pace since Q1 2018 and investment rebounded.

9.23am BST

Over in France, consumer confidence rose to a one-year high in May as households became more optimistic about their personal finances.

The index, published by the French statistics office Insee, rose three points to 99, boosted by some better than expected economic data in the eurozone's second largest economy.

#France Consumer Confidence at 99 https://t.co/D4ZREV5E7E pic.twitter.com/a9krqdvJrm

9.06am BST

Traders have returned from the bank holiday weekend in a reasonable mood, with the FTSE 100 outperforming is European peers in early trading.

8.49am BST

Contenders to succeed Jean-Claude Juncker as president of the European commission include the German MEP Manfred Weber and Margrethe Vestager, the EU's competition commissioner.

8.08am BST

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

With the dust barely settled after the results of the European elections, EU leaders will gather in Brussels today to kickstart the process of filling the top jobs.

It is most likely to be someone who knows the mechanics rather than an outsider being brought in. This makes the ECB unlikely to benefit from fresh blood. Germany, France and Italy will be trying to push for their own candidates such as Villeroy, Couere or Wiedemann.

Even if the larger EU countries fail, the smaller one's stand ready with candidates such as Rehn or Liikanean from Finland. Each candidate has a very different profile. Euro traders will be watching the race carefully as the results will impact on the future direction of monetary policy.