Daily Market Report 23/08/16


The first UK data of this week is due out today, with the Confederation of British Industry (CBI) industrial trends for orders in August expected to come in at -9. Above 0 indicates increasing order volume is expected, below indicates expectations are for lower volume.
Following on from this, Thursday will be August’s CBI distributive trades, which are also expected to show negative results.
The main focus will come on Friday, when the Q2 second estimated GDP growth rate will be announced. This has an increase forecast on the quarter and the year. However, as Q2 only goes up to June, these results may be discounted due to only factoring the Referendum aftermath in briefly.
UK data releases last week have calmed some of the immediate worries about the health of the UK economy, however, it is still too early to judge the effects of the Brexit vote.


The dollar gained on Monday, while commodities fell, as comments from the Federal Reserve Vice Chairman Stanley Fischer added to speculation that U.S. interest rates will rise this year.

Fischer said that the US is already close to meeting the central bank’s goals on employment and inflation, and that growth is expected to pick up.  However, no specific time frame was given. Investor focus has now shifted to Federal Reserve Chair Janet Yellen's speech on Friday at the annual central bankers' meeting in Jackson Hole, Wyoming. Yellen is expected to give guidance on interest rate policy, and the markets are likely to get nervous about what indications may be given regarding a rate hike.
While  investors weighed the prospects of an interest rate hike in the coming months, oil prices dropped by nearly 3 %, retreating from last week's two-month highs. This was based on worries about Chinese fuel exports, more Iraqi and Nigerian crude shipments and a rising U.S. oil rig count.


Key Announcements

11:00 - GBP : CBI Industrial Order Expectations, -9 expected