According to a quarterly business survey by the Confederation of British Industry, optimism about the UK economy among British businesses has fallen at the fastest rate since January 2009. More than half of businesses surveyed said that they were less optimistic about the general business situation than three months earlier. However, on a more positive note the UK’s tech sector has benefited from more than £ 152.5 million of venture capital cash since the Referendum. Despite the uncertainty, the UK remains attractive to venture capital investors.
Oil prices fell to 2-1/2-month lows yesterday, on rising concerns that a global oversupply would weigh in on markets. US stocks also fell on the back of this as market participants await this week’s Federal Reserve meeting. The Fed is still widely expected to keep rates on hold, as they remain cautious due to the Brexit vote and the resulting uncertainty.
S&P has labelled the EU as ‘’unsustainable’’, and highlighted the need for reform, calling Brexit a manifestation of the ‘’underlying incoherence’’. The ratings agency is adding to the pressure for Europe to either become more integrated or to break apart. The German IFO data, an indicator of business sentiment, came in better than expected on Monday, suggesting that Europe’s largest economy remains robust. The UK is the third-largest destination for German exports.
15:00 - USD - Consumer confidence is forecast to decrease to 95.7 from 98