Daily Market News 5 July 2011 Daily Market News 5 July 2011 Yesterday’s market movers From the UK we had the PMI Construction figure which came out as expected but the figure was a lot worse than previous. The figure came in at 53.6 down from 54.0. The pound against the Euro traded near to a 15 month low and also lost a lot of ground against the US Dollar. There has been a string of bad data for the UK in the past 2-3 months, each time signalling that the UK will not be raising interest rates until maybe this time next year. It seems now as if the only way Sterling can gain back lost ground is if any more problems from Europe are raised. From Europe yesterday we had the European Sentix investor confidence figure and the European PPI figure. The Sentix investor figure came in much better at 5.3 from 3.5 and European figures (YoY) and (MoM) came in slightly worse. These figures did not move the market much as the markets widely expect a rate hike from the ECB this Thursday. We had Independence Day in the US yesterday. The Dollar was trading in tight ranges for most of the day. Today’s market movers From Europe today we have the German PMI services, this figure is expected to increase from 56.1 to 58.3 and we are expecting a slight decrease from the European PMI services, it will be interesting to see how the market reacts to these figures as there is currently a lot of Euro strength ahead of the interest rate decisions on Thursday. From the UK we have the PMI services which are expected slightly down at 53.5 from 53.8. The pound has had a shaky start to the week so we could witness further weakness in the pound as we have failed to see any positive figures for at least one month. From the US we have Factory Orders which is expected better, we could witness the US Dollar strengthen further is this figure comes in positive.
