Data released just now has indicated that production in Britain’s industrial sector grew at a faster than expected pace, while manufacturing production missed market estimates for May. The mixed data has resulted in a muted response in the Pound against the majors. In the session ahead, investors will eye the NIESR GDP estimate for evidence of improved growth momentum for the three months ended June.Meanwhile, the future of Greece in the European Union is likely to depend on the new reform proposal presented by the Greek Prime Minister at the emergency meeting of European leaders today. Across the Atlantic, trade data scheduled later today will be in focus ahead of tomorrow’s FOMC minutes.
Yesterday Greece voted against the harsh austerity measures sought by the International Monetary Fund, European Central Bank and the European Commission for a bailout package, increasing the likelihood the debt ridden nation could leave the Euro zone. Following the outcome of the referendum, European leaders have called for a summit tomorrow to decide on the next course of action. As markets continue to grapple with the macro implications of the Greek referendum, today’s economic numbers showed that German industrial orders for May slipped less than consensus.Across the Atlantic, the Fed’s labour market conditions index and the ISM non-manufacturing index will provide additional cues to gauge the outlook for the US economy, heading into the second half of the year.
The just released survey figures showed that services activity in the UK expanded at better than forecasted pace in June, rebounding from a fall in services PMI in May. The rise has added to signs that the British economy is growing at a healthy pace, recovering from the weakness witnessed earlier this year.The services PMIs from the Euro zone and its peripheral economies earlier today have brightened the growth outlook across the Euro region and indicate that the Greek debt crisis has so far had little discernible impact on the economy. Meanwhile, Greece heads towards a crucial weekend referendum on recent creditor proposals that could decide the nation’s future in the Euro zone.