Today's news headlines:
‘Retail sales in Britain drop unexpectedly’. Retail sales contracted by 2.5% in July—falling rather short of analyst expectations of 0.4% growth—as the wider reopening of the economy detracted from hospitality, drawing spending elsewhere. Somewhat gloomier weather in July hit fuel sales, which dropped to their lowest levels since February, while the sale of automotive vehicles fell 2.9%. Consumer confidence has followed suit, nudging lower in July to -8 compared to the uptick to -7 in June. (Financial Times)
‘China tech stocks fall sharply after Beijing passes data privacy law’. The regulatory crackdown in China accelerated overnight as the latest privacy law was successfully passed, to take effect on November 1st. There’s little detail on the specifics of the law, but it’s expected to limit the remit of company data collection while ensuring new systems are implemented to protect personal information. After the announcement, the Hang Seng fell around 4.5%, while the Nasdaq Golden Dragon China Index fell more than 5.0%, marking an almost 50% fall in the index since February. (Financial Times)
US markets were mixed yesterday as the latest Federal Open Market Committee minutes were mulled over by investors. The S&P 500 gained 0.13%, while the Dow Jones finished 0.19% softer. Cable has continued to grind lower as Dollar buying continues, with the pair finding support at the $1.3615 level this morning.
UK Gfk Consumer Confidence: -8 vs -7 last month
Japan National Core Consumer Price Index y/y: -0.2% vs 0.2% last month
German Producer Price Index m/m: 1.9% vs 1.3% last month
UK Retail Sales m/m: -2.5% vs 0.2% last month
Canada Core Retail Sales m/m: 1:30PM
GBP/USD – 1.3614
GBP/EUR – 1.1660
EUR/USD – 1.1679
USD/CAD – 1.2885
The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.