Brexit negotiations began on the backfoot for Prime Minster Theresa May. It was a rocky start as a spat over the status of Gibraltar escalated to the point where a senior member of May’s party suggested the Prime Minster would go to war to protect Gibraltar. This was greeted by Spanish Foreign Minister, Alfonso Dastis who said “it looks like someone in the UK is losing their composure.” The row was sparked by draft Brexit guidelines published by the EU last Friday that suggested any decisions regarding the rock would be run past Spain.
We started the week with two key pieces of secondary sector data from the US and UK. Firstly, the first of three PMI’s released this week; UK manufacturing PMI which posted a worse than expected 54.2. Nonetheless, as it remained above the key 50 mark, it does still indicate expansion in the sector. In the afternoon, the US posted their ISM manufacturing figure. Manufacturing in the US posted as expected at 57.2.
A relatively light economic docket today. The only piece of notable data released will be from the UK as the second of three PMI’s are released. Construction PMI is expected to remain above the 50 mark, indicating expansionary territory.