Daily Market News 29 June 2011

Yesterday's Market Movers

  • The only piece of data from the UK on Tuesday was the monthly GDP figures where we were expecting a higher figure both on the MoM and YoY. A mixed set of figures were released with the MoM coming in line with market consensus at 0.5%, however more worryingly the YoY came out ever so slightly lower at 1.6% from 1.8% but were higher than the month prior. This saw sterling lose over 50 points against the US dollar and 20 points against the euro as growth looks to be slowing down in the UK which is a major concern from the BoE.
  • There was no fundamental data out from the euro zone yesterday; however given the upcoming austerity vote for cuts in Greece the euro looks to have found no real direction. This is seeing the euro trade more on rumours from the euro zone on any possible insight into any signal from the EU and IMF. Once the vote is hopefully passed and the EU and IMF give the aid package to Greece we will see a clearer direction towards the fragile single currency.
  • In the United States the main piece of data that was released yesterday was in the form of consumer confidence. Where we saw a lower figure of 58.5 which was lower both by market expectations and the month prior. This saw the greenback sell off against its major counterparts and trade as low as 1.6044 against the British pound. This went along way to show that the average US consumer isn’t as confident as in recent months about the situation in the United States regarding jobs and the current lull in the housing market.

Today’s market movers

  • There is a relatively quiet day in the UK today with only mortgage approvals and consumer credit being released. UK mortgages approvals are looking to come in ever so slightly higher hopefully showing that confidence is returning to the housing market.  Whilst consumer credit is looking for a higher number, a higher figure may also indicate that the economy may be over heating with consumers borrowing at a high level in order to live beyond their means.
  • The only piece data from the euro zone today is in the form of European consumer confidence where a higher number is expected. In fairness this doesn’t really come as a surprise given the recent problems of debt in Greece and possible contagion that could spread across Europe if aid is not even to the Greeks.
  • Like in the UK the United States sees a quiet day in terms of data with only US pending home sales being released were a higher figure is expected than the month prior, if these figures come in line with market consensus we could see the greenback gain against its major counterparts.