What happened overnight

Asian stocks fell on Wednesday after US lawmakers called for an impeachment inquiry into President Donald Trump, increasing the prospects of prolonged political uncertainty in the world's largest economy.

The dramatic move by House of Representatives Democrats compounded investors' anxieties with confidence already shaken by new worries about US-China trade negotiations.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.82pc and Japan's Nikkei fell 0.63pc.

In Hong Kong, the Hang Seng Index is down 1.22 percent.

Chinese shares slumped and oil futures extended declines after Mr Trump harshly criticised Beijing's trade practices in a speech at the United Nations, damping hopes for a resolution to the US-China trade war.

The dollar nursed losses against most major currencies as the inquiry sets the stage for a fierce battle between Democrats and Trump's Republican Party over whether the president sought foreign influence to smear a political rival.

US stock futures rose 0.06pc in Asia on Wednesday, but the mild gains are unlikely to improve sentiment for Asian shares.

The push for an impeachment inquiry and disappointing US economic data weighed on Wall Street on Tuesday, pushing the S&P 500 0.84pc lower, its biggest daily decline in a month.

Coming up today

Online fashion retailer Boohoo has firmly established itself a place in the “bright spot” gang, shrugging off retail sector issues to maintain strong performance. Shares recently hit a record high, and the company's recent acquisition of Karen Millen and Coast gives it more feathers to its successful multi-brand strategy. It has already raised expectations for the first half during a trading update, so Wednesday's update could feel like a victory lap.

Also offering an update will be United Utilities, which tends not to surprise because of tight regulation on the water sector. Hargreaves Lansdown’s Emilie Stevens says the trading statement “will give us a flavour of whether momentum has continued over the first half”, after a “solid” report in May.

Interim results

Boohoo

Trading update

Halma, United Utilities

Economics

CBI retailing, loans for housing (UK), mortgage applications (US)