Daily Market Report - 01/07/2015

The UK economy has grown faster than previously estimated in the first three months of the 2015. The Office for National Statistics said the economy grew by 0.4% in the quarter, compared with an earlier estimate of 0.3%. Growth was boosted by a better performance from the construction industry than previously estimated. Annual growth to March was also revised up to 2.9% from 2.5% previously.

The Eurozone's inflation rate dipped slightly from 0.3% in May to 0.2% in June. The reading marks the second month of a return to inflation after five months of flat or falling prices. The European Central Bank (ECB) has been taking steps to reflate the economies of the 19 countries that use to euro. Other figures showed that unemployment throughout the bloc remained at 11.1% in May, the same level as in April. Unemployment in Germany was the lowest of the 19, at 4.7%, while crisis-struck Greece was the highest at 25.6%.

Greece has now officially defaulted on their agreement with the IMF and are now in areas of 1.5 BN Euros. They are due to hold a referendum on Sunday 5th July which ultimately decides if they remain in the Eurozone or not.

US consumer confidence increased to 101.4 in June from 94.6 a month earlier, the New York-based private research group said Tuesday. The index averaged 96.9 during the last expansion and 53.7 during the recession that ended June 2009.

Another report Tuesday showed home prices in 20 U.S. cities rose at a slower pace than projected in April. The S&P/Case-Shiller index of property values climbed 4.9 percent in the 12 months ended in April after a 5 percent year-over-year gain a month earlier.

Key Announcements

09:00 - EUR - Eurozone Markit manufacturing PMI (June) expected to rise from 52.2 to 52.5