There was some poor economic data out of Germany yesterday.New orders placed at domestic factories declined in June, dropping by 3.2% from May.
Italy’s industrial output rose 0.9% in June, the largest increase in five months and beating analyst forecasts of a 0.7% rise. That is a big improvement on the 1.2% drop in May.
With this said Italy has dipped back into recession in the second quarter as GDP shrank 0.2%. Economists had targeted a gain of 0.2%. Preliminary estimates show GDP down 0.3% compared with the same period last year.
A report yesterday showed that UK house prices were up 10% from last year. House prices in the three months to July were more than 10% higher than the same period last year.
While supply remains low housing demand continues to be supported by a continuing economic recovery, growth in employment, improving consumer confidence and low mortgage rates. However, earnings growth is still lagging behind consumer price inflation.
The appetite for new cars continues to rise with sales growing for a 29th month in a row in July. This could potentially be due fact people have extra equity in their houses due to the rise of property prices.
Factory output in the UK, however, was lower than expected in June.
Output from Britain’s factories increased by a smaller than expected 0.3% in June and remains more than 7% below its pre-recession peak.
Factory output in the UK however was lower than expected in June.Output from Britain’s factories rose by a smaller than expected 0.3% in June and remains more than 7% below its pre-recession peak, according to official figures.
The Polish foreign minister Radoslaw Sikorski mentioned yesterday that Russia had gathered military forces at the border with Ukraine either to put pressure on its neighbouring country or to invade.
12:00 BST- GBP- Bank of England interest rate decision unchanged at 0.5%
12:00 BST- GBP- Bank of England Asset Purchase Facility (Aug) unchanged at £375 Bn
12.45 BST- EUR- ECB Interest Rate Decision expected to stay at 0.15%
13.30 BST- EUR- ECB Monetary policy statement and press conference by Mario Draghi
13.30 BST- USD- Initial Jobless Claims higher at 305K
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Daily Market Report - 07/08/2014