Retail sale volumes have plunged 1.2pc – a fall twice as bad as feared – as consumers cut back on spending on the high street amid the cost of living crisis and a wet July.

5 things to start your day 

1) Bond yields surge to 2008 levels in blow to Hunt’s tax cutting dreams | Borrowing costs soar as investors predict further interest rate rises to tame inflation

2) Jonathan Van-Tam joins Covid vaccine maker Moderna | England’s former deputy chief medical officer appointed as part-time adviser

3) Americans will run out of pandemic savings next month, Fed warns | Experts say continued withdrawals could soon push the US to a tipping point

4) Tourist tax is hurting our casinos, says Grosvenor chief | End of VAT-free shopping blamed for falling trade as rich shoppers shun Britain

5) Wilko’s fate to be decided within days | Administrators weigh up bids for collapsed retailer as fears of job losses grow

What happened overnight 

Wall Street stocks tumbled for the third consecutive day.

The S&P 500 dropped 0.8pc to 4,370.36, with August on track to be its worst month of the year.

The Dow Jones Industrial Average fell 0.8pc to 34,474.83, while the Nasdaq composite fell 1.2pc to 13,316.93.

The yield on the benchmark 10-year Treasury touched its highest level since October in early trading, before retreating to 4.28pc.

Asian markets mostly fell on on Friday after a rough week, hammered by concerns about China’s ailing economy and fears of US rates staying higher for longer as long-term bond yields surged.

MSCI’s broadest index of Asia-Pacific shares outside Japan were up 0.pc after hitting a nine-month low the session before. However, it was headed for a weekly loss of 2.8pc, the third straight week of declines.

Japan’s Nikkei shed 0.4pc and was down 3pc on the week. China’s blue-chips rebounded 0.2pc, while the Hong Kong’s Hang Seng Index fell 0.3pc.