European stocks tread water at start of data rich week

European stock markets are showing barely any sign of life with the FTSE notching up 0.3% and the DAX sliding 0.4% this morning

European stock markets are showing barely any sign of life with the FTSE notching up 0.3% and the DAX sliding 0.4% this morning. Some of the malaise was created by the stronger than expected jobs report in the US Friday which doused hopes that the Fed would cut rates at some point in July. 

Imperial Brands rallied the most on the main index after the company decided to revise its dividend policy amid a GBP 200 million buyback.

Sterling barely in the black ahead of UK GDP data

Having declined for nine consecutive weeks the pound is starting the new week on an indecisive note, trading almost flat against both the dollar and the euro. 

German exports increased in May but this was not enough to lift the euro because the May uptick of 1.1% barely made a dent in the April exports decline of 3.4%. 

Sterling traders are now looking to Wednesday when the UK industrial production, manufacturing and most crucially monthly GDP data is expected to confirm the fragile state of the UK economy.

For the dollar Fed Chairman Jay Powell's testimony to Congress on Tuesday will be key, particularly after Friday’s stronger than expected jobs report quelled expectations that a Fed rate cut is imminent.

Now that OPEC has greenlighted the extension of the existing production cuts the oil market is beginning to turn lower with focus shifting back onto global trade risks.

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