Today's news headlines: 

‘UK staycations and return to offices boost retail footfall in August’. In August, visits to retail stores reached their highest levels since the start of the pandemic, as many returned to the office and opted for a domestic holiday. According to the British Retail Consortium, these levels bounced 10% in August, potentially due to the full easing of Coronavirus restrictions towards the end of July. Despite the 10% rise in August, footfall remains around 25% below pre-pandemic levels as the work from home environment continues to put pressure on small businesses reliant on commuters for survival. (Financial Times)

‘UK gears up for battle to renew emergency Covid legislation’. The UK government faces a battle to renew the Coronavirus Act this month. Currently, the legislation is debated every six months, and then it’s determined if it will be renewed. Many backbench MPs believe the legislation should be left to expire in March 2022 without any need for renewal. Meanwhile, the Department for Health has emphasised the importance of the legislation. With rising Covid cases and deaths alongside the return to school this month, there could be cause for concern heading into the winter.  Around 30 MPs rebelled against the extension of the bill back in March, with many expecting that number to be much higher this time around. (Financial Times)

Today

US stocks were positive yesterday as weekly Jobless Claims fell, with the S&P 500 climbing 0.28%. The FTSE 100 has opened flat this morning ahead of a quiet day for UK data. Currency markets are once again rangebound, as all eyes focus on this month’s US Non-Farm payrolls out later today.

Events

Australia Retail Sales m/m: -2.7% vs -2.7% last month
China Caixin Services PMI: 46.7 vs 54.9 last month
German final Services PMI: 8:55AM
Eurozone Retail Sales m/m: 10:00AM
US Non-Farm Payrolls: 1:30PM
US Unemployment Rate: 1:30PM
US ISM Services PMI: 3:00PM

Interbank rates:

GBP/USD – 1.3829
GBP/EUR – 1.1647
EUR/USD – 1.1874
USD/CAD – 1.2546

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