Daily Market Report – 24/06/2014

Growth across Germany's firms slowed to an eight-month low this month, but remains rather stronger than in France.Germany’s overall composite output index, measuring factories and service firms, fell to 54.2 from 55.6 in May

German  firms reported that new business continued to increase, with export orders up for the 11th month running and firms kept hiring new staff. A good sign that Germany is benefiting from the upturn in the euro area this year.

However French manufacturing PMI tumbled to a six-month low of 47.8, down from 49.6 in May showing French manufacturing falling deeper into negative territory.June’s PMI data painted a picture of subdued economic performance in France, with output down for a second successive month, orders falling slightly and the sharpest cut in staffing levels for four months
There are signs that UK mortgage lenders are preparing to tighten mortgage lending availability, for those with small deposits.The latest Bank of England credit conditions survey, released yesterdayshow that lenders expected to offer fewer high loan-to-value loans in the third quarter of this year.
This is likely a response from the banks to the prospect of the BoE raising rates within the year, and possibly taking new steps to cool the housing market later this week.
The US manufacturing sector reported some very positive results, with output, new orders and job creation all rising strongly in June.Markits PMI jumped to 57.5 in June, up from 56.4 in May. That shows that the sector grew at its fastest rate in four years.
New orders grew at the fastest pace since April 2010 and Firms kept hiring more staff with payroll numbers at manufacturing firms increasing for the twelfth successive month in June.These positive figures are a good sign for the US economy that will help to push up inflation and unemployment figures.
Tomorrow we have UK Mortgage approvals for May expected to be slightly lower than April. At the same time will have the UK inflation report hearings from the treasury committee that will give some more insight into the time frame of an interest rate rise.

In the US at 3pm we have US new home sales and consumer confidence both expected to show some improvement from last month. 

Key Announcements:
09:30 - GBP- Inflation report hearings
09:30 - GBP- UK mortgage approvals (May) expected to be lower at 41,300
15:00 - USD- Consumer confidence (June) expected to be higher at 83.5
15:00 - USD- New home sales expected to be higher at 440,000

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