Today’s news headlines:
‘Trump threatens to use troops to crush unrest in US cities’. Donald Trump threatened to deploy the US military and called for Governors and law enforcement to toughen their response to riots sweeping the nation. On Monday night, Trump announced thousands of armed military personnel would be deployed ‘if a city or state refuses to take the actions that are necessary’, which could lead to legal challenges as the law prevents federal troops from performing domestic law enforcement. (Bloomberg)
‘No-deal Brexit threat looms over pandemic-ravaged UK economy’. British and EU negotiators will conduct another round of talks before a key summit in June, but it’s increasingly looking like the transition period will end on December 31st without a free trade agreement. If both sides can’t agree on a deal by the deadline, the UK will default to World Trade Organisation terms where companies may face new costs and disruptions to supply-chains, while also combatting the fallout from the coronavirus. (Bloomberg)
Today's events, rates, and data
Overnight, Asian equities gained while European and US futures were mixed as social unrest continued in the US. The Reserve Bank of Australia kept interest rates unchanged, causing the Australian Dollar to reverse losses while WTI Oil consolidated above the $35 mark.
Sweden’s final quarter-on-quarter GDP growth came in better than expected at -1.3%.
Nationwide’s UK House Price index posted -1.7% growth in May.
At 9:30, UK Mortgage approvals are expected to show an increase of 24k in April.