Friday’s positive tone within the markets continued this week, as equities remained flat and close to new highs in the US. Bond yields have also remained above the recent lows. It seems investors are still confident that the UK and global economy can get past the Brexit relatively unscathed. However, the data run up to the Bank of England meeting early in August could change this as we begin to see the first true readings of the post vote economy.
Yesterday’s economic docket was relatively light. The high tier data release came from the Eurozone’s powerhouse Germany. German Ifo Business Climate posted a better than expected reading of 108.3. However, this is a pre-Brexit figure and therefore confidence in Germany could drastically change when next month’s reading is posted.
Today’s main focus will surround the US as they release their Consumer Confidence figure. This is an important gauge for the markets and the Fed, as consumer spending accounts for the majority of economic activity in the States. Market consensus is for confidence to decline from 98.0 to 95.6. Also, from the US we have the first reading of Services PMI, which is forecast to remain in line with the previous reading of 51.4.