Day 2 of the EU Economic Summit took place in Brussels yesterday. EU lawmakers issued a joint statement, hardening their stance on Brexit concessions. The group met, for the first time without the UK, to discuss the terms of engagement for any divorce talks in wake of the Referendum.
Donald Tusk and Angela Merkel both reiterated the fact that; ‘Access to the single market requires acceptance of all four freedoms’, a reference to EU principles on the free movement of capital, services, goods and labour. This toughened stance means that the UK cannot have an ‘a la carte access to the single market’ by picking and choosing which parts of the EU it has access to.
Oil prices jumped more than 2 percent on Wednesday after the U.S. government reported a larger-than-expected weekly drawdown in crude inventories, adding fuel to an existing rally on fading concerns over Britain's exit from the European Union. The U.S. Energy Information Administration said crude stockpiles fell by 4.1 million barrels for the week to June 24, more than the 2.4 million barrels expected.
No key data was released. However, Bank of England officials met with Britain’s biggest lenders to discuss the impact on the financial system of the country’s vote to leave the EU. Officials calmed fears and assured bosses of the liquidity in the market and also pressed banks to keep lending to investors and businesses in an effort to avoid the repeat of the ‘Credit Crunch’ that hit in 2008.
GBP - 09.30 – Gross Domestic Product (QoQ) expected to remain at 0.4%
GBP - 09.30 – Gross Domestic Product (YoY) expected to remain at 2%
GBP - 11.30 – BoE Governor Carney Speaks
EUR - 12.30 – ECB Monetary Policy Meeting
USD - 13.30 – Unemployment Claims expected to rise from 259,000 to 267,000