Delta disruption

Today's news headlines: 

‘Delta variant sparks worker shortage across UK business’. The Delta variant is spreading rapidly throughout the UK, with more people needing to self-isolate after coming into contact with the virus. It’s estimated that some companies are missing 20% of their workforce due to this problem. This situation is expected to improve as we approach the 16th of August whereby those people who are fully vaccinated will no longer be required to self-isolate. There is talk of a ‘test to release’ programme that will allow people to end self-isolation early and return to work, which could help to relieve this pressure. (Financial Times)

‘China warns of economic uncertainty despite moderate recovery in Q2’. China’s GDP grew 1.3% in the second quarter of 2021. The country has been recovering steadily over the last year, but it has been labelled by some as ‘unbalanced’. China has been under pressure somewhat and there has been talk of more support by analysts in order to address this unbalanced recovery. The GDP target for 2021 is at least 6%, with nearly a year out of lockdown it remains to be seen whether the nation can do it without any more interventions; analysts’ expectations are positive. (Financial Times)

Today's events, rates, and data 

  • The S&P 500 closed 0.12% higher yesterday while the Nasdaq fell 0.22% as second-quarter earnings for some of the biggest US banks were released. UK markets finished the day lower as inflation hit its highest level in three years, the FTSE 100 was down 0.47% on the day. Cable continues to trade in the $1.38-$1.39 range, while Sterling is trading around the €1.17 level against the Euro this morning.

Today's events

Australia Unemployment Rate: 4.9% vs 5.1% last month
China GDP q/y: 7.9% vs 18.3% previously
MPC member Michael Saunders speaks: 11:00AM
US Unemployment Claims: 1:30PM
US Industrial Production m/m: 2:15PM
Federal Reserve Chairman Jerome Powell testifies: 2:30PM
FOMC member Charles Evans speaks: 4:00PM
New Zealand CPI q/q: 11:45PM

Interbank rates:

GBP/USD – 1.3864
GBP/EUR – 1.1704
EUR/USD – 1.1845
USD/CAD – 1.2527

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.