Summer markets proving volatile as fresh week commences…
The usual doldrums of Summer markets have been absent so far in 2019. Markets have, over the last 2 weeks, displayed a distinct heightening of volatility as Trump continues to wage an economic trade war against China, while financial markets navigate their way around slowing global growth.
This week is set up to be another volatile one with significant pieces of data from across Europe as well as a number of central bank monetary policy announcements including: Norway, New Zealand, Australia, India, Philippines and Thailand.
From the UK it’s another important week with key data arriving as speculation ramps up that Johnson is preparing to call a snap election following a number of significant pledges, including one for the NHS which was heavily focused on in the 2016 referendum. On the data front, this morning sees the crucial services PMI for July. However, the more important data release is scheduled for Friday and comes in the form of Q2 preliminary GDP. Forecasts are for a very small amount of growth hitting 0.1% for the quarter.
Elsewhere, the Eurozone will see updated service PMIs as well as German industrial production. In China, much anticipated trade numbers are set to cross the wires overnight on Thursday. No doubt these will be very relevant for the ongoing tension between themselves and the US with tariffs on China set to rise from the beginning of September.
Written by Viv Savani. 8:46am, August 5th 2019
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