Data just released indicated that activity in Britain’s construction sector expanded at a slower than anticipated pace for July, hurt by a loss of momentum in house building activity. Meanwhile, mortgage lender Nationwide earlier today reported that house prices in the UK rose last month, in line with expectations, after a fall in June, amid tentative signs that growth in the nation’s housing market might be stabilising.Amid a light calendar day in Europe, Euro zone producer prices data will be on investors’ radar. Across the Atlantic, economic data scheduled later in the day is expected to show that US factory orders rose in June after being in the red in the previous two months.
The just released survey data indicated that activity in Britain’s manufacturing sector expanded at a slightly better than anticipated pace for July. Later this week, the BoE will hold its monetary policy meeting, with the minutes likely to show that rate setters were divided over the decision on whether to raise interest rates, with policy hawks pushing for an increase.In Europe, the final manufacturing PMI from Euro zone and its largest economy for last month came in ahead of earlier estimates despite concerns surrounding the Greek debt crisis earlier in July. Across the Atlantic, the spotlight shifts to ISM manufacturing gauge and core personal consumption expenditure data, due later today which could bring in fresh perspective to the timing of the US Fed’s interest rate decision.
The latest survey by the GfK revealed that consumer morale in the UK slowed in July, as concerns surrounding Greece and a rise in global uncertainty weighed on consumer outlook. In the coming week, the BoE’s interest rate decision meeting along with key economic releases, including UK’s private sector activity and trade balance data, will attract significant market attention.In Europe, inflation reading from the Euro area will dominate headlines, with markets looking for cues whether ECB’s aggressive policy measures have helped improve the pricing environment. Across the Atlantic, investors will keep a tab on a wave of economic releases including Chicago PMI, consumer confidence and labour cost index for the second quarter.