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.
Britain’s construction activity reading today indicated that the sector performed stronger than market consensus for June, indicating that the economy is on a largely firmer footing compared to the first quarter. Following the recent weakness in manufacturing and an improvement in today’s construction PMI reading, investors will now look forward to the services sector reading scheduled tomorrow to gauge the overall health of the economy in the second quarter.Across the Atlantic, today’s non-farm payrolls report will be important and any positive surprises in the data could raise hopes of a sooner-than-expected rise in interest rates by the Federal Reserve. In Europe, the ongoing crisis in Greece will continue to dominate headlines.