- At mid-morning London, the pound was the strongest among G10 currencies, followed by the Aussie, while the yen and US dollar found themselves near the bottom of the leader board.
- Brexit, what Brexit? Pound rallied and the FTSE 100 struggled in an otherwise risk-on day for European markets this morning. A solid UK GDP figure surprised the markets. The Brexit-hit economy unexpectedly expanded by 0.3% month-over-month in July. Manufacturing production also rose 0.3%, while construction output jumped 0.5% m/m – both higher than expected. The Index of services likewise surprised with a print of +0.2% on a 3m/3m basis versus +0.1% expected.
- China’s exports unexpectedly contracted in August, hurt by US tariffs – decreasing by 1% in dollar terms, with the nation’s sales to the US declining by 16% from a year earlier. China’s imports fell 5.6%, although this was better than a decline of 6.4% expected.
- We are expecting a quietish session from the US with no major data scheduled for release. But the calendar should get busier later in the week. The main macro event is probably going to be Mario Draghi’s last policy meeting as the ECB President. Will he go out with a bang and introduce more stimulus? In addition, we have inflation figures from the US and more economic pointers from the UK. Read our week ahead report HERE.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.