UK Prime Minister, Theresa May travelled to China in an attempt to begin forming global trade relationships before the UK leaves the EU in March 2019. The UK are currently not allowed to make independent trading deals whilst part of the EU, but May is focused on ensuring she is able to strike deals with the rest of the world for when the UK leaves the bloc. This meeting with China was the first step in forming a joint trade and investment agreement.
The second PMI was released from the UK this morning. The construction PMI for January posted worse than expected at 50.2, only slightly above the 50 expansion line. The decline was caused by a drop in new orders and increased pricing pressures, however, the respondents showed confidence towards the future growth prospects. The four-month low figure caused Sterling to tumble.
Across the pond, the US will be releasing their labour data for January. Non-farm employment change is expected to bounce back from the previous bearish reading to post 181k. Unemployment is expected to remain at a 16-year low, whilst average hourly earnings is expected to drop to 0.2%. The University of Michigan will release the revised inflation expectation report and consumer sentiment. The day will end with FOMC member, John Williams speaking about the US economic outlook at the Financial Women of San Francisco luncheon, with audience questions expected.