The second estimate of UK’s first quarter GDP matched the government’s initial estimate of 0.3%, trailing market expectations of an upward revision. Following today’s unchanged GDP reading, the BoE is likely to retain its wait and watch approach, with the nation’s inflation perched at multi-year lows.In the Euro zone, Greece continues to make headlines with recent reports indicating that the cash strapped nation is close to reaching an agreement with its creditors to unlock critical aid, easing fears of a debt default. Across the Atlantic, initial jobless claims and pending home sales data is scheduled for release later today.
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.