Supply in question

Today's news headlines: 

‘Shipping bottlenecks set to prolong supply chain turmoil’. Last week, in another knock to the global supply chain, a Coronavirus outbreak occurred in China, at the world’s third-largest container port, leading to a partial suspension of inbound and outbound ships. Experts believe this issue could last into the New Year, with transport costs climbing tenfold since the onset of the pandemic. Idle capacity—the amount of ships stationary in ports—has climbed to 4.6%, up from 3.5% last month. Some experts suggest a shortage in seasonal supplies could drive inflation higher if shipping costs remain persistently high. (Financial Times)

‘UK recruitment soars amid warnings of staff shortages’. In July, the number of full-time vacancies posted by recruitment agencies soared by 43% compared to the previous year. Traditionally, summertime is much more muted for job offers. However, with the UK gradually lifting all Coronavirus restrictions over the last few months, the needs of businesses have outweighed the traditional hiring cycle, as so many try to claw back lost revenue. Talent shortages are still affecting many companies, with the current flow of labour making it difficult to convert job openings into hires. (Financial Times)


Today

The S&P 500 notched 0.15% higher on Friday, while the Nasdaq followed suit, climbing 0.23% despite weak US Consumer Sentiment data. Major currency pairs are trading similar to Friday’s levels, seeing the trading week off to a quiet start. US Retail Sales data to be released tomorrow is the headline focus for the week.

Events

UK Rightmove House Price Index m/m: -0.3% vs 0.7% last month
Japan Preliminary GDP q/q: 0.3% vs -1.0% last month
China Retail Sales y/y: 8.5% vs 12.1% last month
China Industrial Production y/y: 6.4% vs 8.3% last month
US Empire State Manufacturing Index: 1:30PM

Interbank rates:

GBP/USD: 1.3850
EUR/USD: 1.1786
GBP/EUR: 1.1750
USD/CAD: 1.2541

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.