Daily Market Report – 07/07/2014 UKThe pound slipped back a little against the US dollar after a strong week of gains as a result of the latest PMI data for June. UK new car sales rose at the fastest rate for nine years. British consumers exploited cheap car finance deals to buy models with lower running costs as sales rise 10.6% in first half of 2014 to 1.28m. Again supporting confidence in the economy and demonstrates the banks optimism in lending at a wider UKThe pound slipped back a little against the US dollar after a strong week of gains as a result of the latest PMI data for June. UK new car sales rose at the fastest rate for nine years. British consumers exploited cheap car finance deals to buy models with lower running costs as sales rise 10.6% in first half of 2014 to 1.28m. Again supporting confidence in the economy and demonstrates the banks optimism in lending at a wider level. the market is on track for 2.4m new car sales this year, up more than 6% on last year. The yield premium of British over German government bonds has reached its highest level since 1997. This is because the first UK rate hike is on the cards. Economists polled by Reuters believe it will probably come early next year but now attribute a 40% chance to a rise by the end of this year, compared with 30% at a previous survey in early May. Showing people are slowly starting to sway towards it potential happening a lot sooner than initially thought. EURThe euro is under pressure after the ECB’s message Thursday that it could still opt for quantitative easing to fight low inflation. Also German factory orders disappointed in June with a 1.7% fall, but some of this is payback for a strong figure released in May. INRRupee fell the most in more than two weeks on speculation oil refiners stepped up dollar purchases for crude shipments from abroad. The rupee also weakened due to concerns inadequate seasonal rainfall will hurt farm output and delay a recovery in the economy. Today: We have had some disappointing industrial production figures from Germany which went from -0.3% to -1.8% month on month. Industrial output has now fallen for three months in a row, the first time since the summer of 2012 Key Announcements:No further announcements today Our dealers are available via e-mail ([email protected]) or by phone (0207 220 8181).