Today's news headlines:
‘Spread of Delta variant casts shadow over Europe’s economic rebound’. The economic recovery on the continent is at risk of being undermined, with soaring infection rates and some areas of the travel industry closing. Countries such as France and Germany have given warnings to their citizens and advised against travel to Spain and Portugal amid the worsening Covid backdrop. While infection rates are climbing, hospitalisations and deaths remain low. (Financial Times)
‘Chip shortage will keep car rental prices high, warns Europcar Chief’. The semiconductor shortage is likely to impact car rental prices for longer according to some industry experts. With economies reopening, the demand for vehicles for domestic travel has increased. There has been a shortage of new vehicles as carmakers prioritise retail sales instead. Many industry leaders are expecting the disruption to continue well into 2022, with some expecting respite at Easter. (Financial Times)
Today's events, rates, and data
Despite somewhat muted UK GDP growth numbers on Friday, the FTSE 100 managed gains of 1.30% while the FTSE 250 climbed 1.13%. Meanwhile, in the US, the S&P 500 managed yet another day of gains, closing 1.13% higher. Sterling is back above €1.17 against the Euro this morning, while Cable holds below $1.39.
Japan PPI y/y: 5.0% vs 5.1% last month
German WPI m/m: 1.5% vs 1.7% last month
FOMC member John Williams speaks: 2:30PM
US 10-year Bond Auction: 6:00PM
GBP/USD – 1.3888
GBP/EUR – 1.1706
EUR/USD – 1.1864
USD/CAD – 1.2467
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