With the Queen’s speech expected to mark the official commencement of British Parliament proceedings, focus will be on the incoming government’s plans with regards to membership of the EU. The revised GDP reading in Britain tomorrow is likely to indicate that growth at the start of the year was slightly better than initially estimated a month ago, reflecting stronger industrial and construction data for March.In the Euro zone, GfK’s monthly survey indicated that morale among German consumers is set to improve again in June, helped by robust domestic demand. Later in the day, the US economy moves to the fore again with MBA mortgage applications and the Redbook sales index in focus.
A key domestic economic release today is the CBI Distributive Trades Survey, which will provide an early estimate of retail spending for May and cues about the economy’s performance in the second quarter. Going forward, investors will look ahead to the second estimate of UK’s first quarter GDP reading, later this week.Meanwhile, it is going to be a busy calendar day in the US with reports on durable goods orders for April, new home sales, Conference Board’s consumer confidence index and the Markit services PMI for May, scheduled later today. In the Euro zone, developments from negotiations between Greece and its creditors are likely to dominate investor sentiment.
According to just released public finances figures, Britain’s government borrowings fell unexpectedly for April. Moving ahead, market participants will note BoE Governor Mark Carney’s comments in his speech, due later today. Traders also await next week’s second estimate of the UK’s first quarter GDP figures for an encompassing view surrounding the performance of the UK economy during the previous quarter.In the Euro zone, the German Ifo business climate and sentiment index deteriorated less than anticipated from April, easing concerns about the Euro zone’s largest economy. Across the Atlantic, investors look forward to the release of consumer price index data for more hints to the US Fed's next move.