The just released survey data indicated that the expansion in Britain’s manufacturing activity was lower than market consensus for June, with the PMI dropping from May’s level, hurt by a combination of strength in domestic currency and weak business investment. Across the Atlantic, the June ISM manufacturing report later today is keenly anticipated to gauge the level of activity in the nation’s industrial sector. Also in focus will be ADP employment data.In Europe, the final PMI numbers confirmed that Euro zone factory growth picked up slightly in June, in line with expectations. Meanwhile, Greece has become the first advanced nation to miss an IMF payment, but hopes of a new deal have resurfaced after Euro group officials agreed to discussions for a new bailout programme.
The just out revised reading of UK GDP showed that the economy expanded at a faster pace than previously estimated for the first quarter, alongside expansion in business output and higher consumption levels. The upward revision is likely to bring forward expectations of an interest rate rise should fundamentals continue to improve in the coming months.Going forward, the flash estimate of consumer price inflation in the Euro zone and the Conference Board’s update on US consumer confidence will be in focus today. However, most market attention remains focused on Greece as the cash-strapped nation looks set to default on its debt payment to the IMF.
The uncertainty surrounding Greece’s future in the Euro bloc continues to grapple investors, with the Euro suffering losses against the majors. Greece is facing a political and financial crisis after it announced that it will hold a referendum this weekend to decide on whether to accept the rescue funding offered by its international creditors.On the macroeconomic front, data released this morning has revealed that Britain’s mortgage approvals fell unexpectedly for May and consumer credit grew at a slower than anticipated pace for the same month. Though developments in Greece are likely to influence market sentiment going forward, today’s Euro zone indices, German consumer price inflation and US pending home sales data will also attract modest market attention.