The ECB have rejected Greece’s proposals for the Athens Stock Exchange to reopen on Monday, with no restrictions being implemented for both Greek and foreign traders.
The headline IFO Business Climate Index came in at 108 points for July, above the 107.4 booked in June. This did give a deal of confidence in the EUR, when June saw the index hit its first major decline after rising for several months. The IFO Expectations Index came in at 102.4 which is also an improvement from the previous reading of 102.1 seen in June.
The only piece of data concerning the pound yesterday was the release of the CBI Industrial Trends Survey, where order books at British Manufacturers shrunk to the lowest level in two years in July. This has been due to the recent strength of the pound proving too costly for importers of UK goods, economic uncertainty in the Eurozone is also dampening expectations. Companies responding to the survey also reported a sharp drop in their perceived competitiveness with the rest of Europe, most likely reflecting the movement of the pound in recent months.
Orders to U.S. factories for big-ticket manufactured goods posted a sizable gain in June, but the advance was fueled by higher demand for commercial aircraft. Orders for durable goods jumped 3.4% in June from May, when orders had fallen 2.1%, the Commerce Department reported Monday. The gain was the best result since March. However, the jump was driven by aircraft orders booked by Boeing at the Paris Air show.
Although the figure is slightly skewed, this has been seen as a positive with the readings coming in negative for two consecutive months. Taking away transportation, there was an improvement with the reading showing 0.8% against a 0.5% consensus. U.S. manufacturers have struggled this year from the effects of a strong dollar and a plunge in energy prices. The higher value of the dollar against foreign currencies makes U.S. goods more expensive and less competitive in major export markets most notably Europe, while the lower oil prices have led energy companies to scale back investment plans.
GBP - 09:30 :UK Gross Domestic Product (YoY) – expected to decrease to 2.6% from 2.9% previous