Geo-political events will dominate this week, with Thursday’s tragic events in Nice being the focal point of most media coverage over the weekend. Further to this, Friday evening’s events in Istanbul will also be a main focus, as a failed coup to remove President Erdogan was suppressed and reprisal arrests currently stand at 6000.
Closer to home, the ongoing struggle for the leadership of the Labour party took a further development with Owen Smith stating his case for leadership. Smith joins Angela Eagle in challenging Corbyn’s leadership. Mr Smith has laid out his potential policies on tax, nuclear weapons and Europe, most noteworthy in particular is his ambition to raise the higher rate of tax to 50p in the Pound.
The main focus of the day will be the US housing market, with NAHB housing market index, which will reflect the appetite for the new builds and home sales.
UK CPI and German sentiment figures are the main news in the morning, followed by further US housing data in the afternoon.
There will be two key pieces of data to look out for on Wednesday. Firstly, the Producer Price Index from Germany which is forecast at -2.7% and secondly the UK Claimant Count Change, which measures the change in the number of unemployed people in the U.K. during the reported period. This figure is not an unemployment indicator as it simply measures the number of people claiming benefits.
The main focus of the day will be on Mario Draghi and the ECB Rate Decision. The ECB is not expected to change its monetary stance, however Draghi is likely to ask for governments to do more to boost the Eurozone's economy in the coming week as the fallout of Britain's vote to leave the EU and weaker global growth threaten the bloc's fragile recovery.
On Friday, the Eurozone PMIs and Canadian data will be the main economic talking points, as well as GBP Construction PMI.