Daily Market Report – 14/08/2014

GBP:
The UK’s jobs figures revealed a decline in the unemployment rate to 6.4% and a
reduction in wages for the first time since late 2008.Figures showed that
average earnings, including bonuses, fell to 0.2% in the three months
to June.This demonstrated the fact that wages are lower than inflation,
which reached 1.9% in June on a positive note  labour market is
continuing to recover.

GBP:
The UK’s jobs figures revealed a decline in the unemployment rate to 6.4% and a
reduction in wages for the first time since late 2008.Figures showed that
average earnings, including bonuses, fell to 0.2% in the three months
to June.This demonstrated the fact that wages are lower than inflation,
which reached 1.9% in June on a positive note  labour market is
continuing to recover.

For April to June 2014, there were 30.6 million people in work, 167,000 more
than for January to March 2014 and 820,000 more than the same periods last year
in 2013. 
 
Carney’s speech weakened off the pound further s after he repeated that when
interest rates do start to rise, increases are likely to be gradual and
limited. He did also indicate that there was no pre-set course for an interest
rate rise , with many investors believing a rate hike may not now come until
early 2015 as opposed to late 2014.
  
Sterling fell to a four-month low against the dollar after Carney’s comments
and the weaker prospects for wages, as markets interpreted them as a sign that
a 2014 rate rise is looking more doubtful.
 
EUR:
Yesterday we had figures showing Spain’s consumer price index which fell by
0.3% year-on-year in July, the biggest drop in almost five years.
Month-on-month they slipped by 0.9%.In France, prices were up by 0.5% last
month compared with July 2013, but fell on a monthly basis by 0.3%.
 
We also had Eurozone industrial production data yesterday, which fell
across the 18 euro zone members by an average 0.3%. Spain over shadowed the
remaining members with a 0.8% drop in industrial production. It also suffered the
sharpest drop in shop prices for five years, discouraging Madrid’s claim that a
rebound in employment last month was a sign of the country’s return to
continual growth.
 
USD:
Retail sales were flat in July, the worst performance in six months, having only
risen by 0.2% in June.

Car sales fell, and demand for electronics and home appliances was weak, which
demonstrates a low level of consumer confidence. Heavy discounting by large
retail chains failed to counter the effect of poor wage growth in the US

Key Announcements:

10:00 BST- EUR- Eurozone Inflation figures (July)  expected to
fall from 0.5% to 0.4%
 
10:00 BST  EUR: Eurozone GDP figures (July) expected to
fall from 0.9% to 0.7%.

Our dealers are available via e-mail ([email protected]) or by phone (020 7220 8181).