Picking up the pieces

Today's news headlines:

'Russia Defaults on Foreign Debt for First Time Since 1918'. Russia's default on about $100m of interest payments is mostly symbolic considering the damage already inflicted on its economy and markets. However, it does represent the country's transformation into a political and economic outcast, banished from the global financial system. At the same time, ordinary Russians must deal with double-digit inflation and the worst economic contraction in years. Russia has pushed back against the default designation, saying that external governments have forced them into non-payment. (Bloomberg)

'China's Economy Improves in June From Lockdown-Induced Slump'. Bloomberg's aggregate index of eight early indicators for the Chinese economy returned to a neutral level this month after falling for two straight months previously. Economic activity picked up in June, thanks partly to the easing of lockdown restrictions in Shanghai, which allowed businesses to restart and most residents to leave their homes. Beijing has pledged to implement policy measures aimed at boosting growth. Still, as of now, rising activity isn't translating into higher demand for building materials, and the housing sector continues to be a drag on the economy. (Bloomberg)


Today

US and European equity futures followed their Asian counterparts in gaining overnight on optimism that a crest in inflation has been reached. Leaders at the G7 summit are weighing a price cap on Russian oil, while some leaders are also planning to ban the import of Russian gold.

Events

G7 meetings day two: All day
US Durable Goods and Core Durable Goods Orders: 1:30PM
US Pending Home Sales: 3:00PM
European Central Bank President Christine Lagarde speaks: 6:30PM

Interbank rates:

​​​​​​​GBP/USD – 1.2320
GBP/EUR – 1.1650
EUR/USD – 1.0580
USD/CAD – 1.2870

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