Amid a light domestic calendar day, market participants look forward to a gauge of industrial orders in the UK scheduled later today for early cues about the health of Britain’s manufacturing sector. Tomorrow, the spotlight will be on UK’s second quarter preliminary growth numbers. Markets anticipate strong economic recovery in the previous quarter, considering the hawkish sentiment shift in minutes of the last monetary policy meeting and the recent positive trend in economic data.In Europe, the Ifo business climate and expectations index came in higher than market expectations for July, boosting optimism about the health of the Euro zone’s largest economy. Across the Atlantic, key durable goods data is scheduled later today.
The just released data showed that the number of approvals for new mortgages rose higher than market consensus for June, indicating strong demand for properties in Britain’s housing market. The figures indicate that the rise in home loan approvals is consistent with the trend seen since the start of the year. In the upcoming week, market focus will shift towards the much anticipated preliminary second quarter UK GDP reading.In Europe, a flurry of flash PMI readings showed that growth in the manufacturing sector of the Euro zone and its two largest economies slowed as concerns surrounding the Greek debt crisis weighed on business confidence. Across the Atlantic, Markit manufacturing PMI and new home sales data are slated for release later today.
Data that was just released showed that retail sales in Britain fell unexpectedly, dampening optimism about the nation’s economic growth outlook. The weak consumer spending in the UK is likely to dim prospects of higher interest rates in the near term.Across the Atlantic, new filings for unemployment claims and Chicago Fed activity index will be in focus to project the timing of the US Fed’s first interest rate rise. Meanwhile, the Greek Parliament has voted in favour of a second round of crucial reforms as demanded by its creditors in order to begin negotiations for a third bailout package.