020 7898 0500The only release of note yesterday was the manufacturing PMI which came in above expectations at 54.4 in June. New business growth hit a three-month high, following an increase in export sales to mainland Europe, China, South America and Australia. However, output growth dipped from the previous month and business optimism hit a seven-month low. Future trade tariffs, the exchange rate and Brexit uncertainty were all cited as reasons.
Theresa May faces another headache, as EU officials have rejected the UK government’s latest Brexit plan, despite only being privy to draft documents. May is set to meet with ministers at Chequers on Friday, where they hope to thrash out a deal that will progress talks. Let us hope something is agreed sooner rather than later.
Sterling tumbled against the dollar, but then, so did many currencies around the world. Investors looked to safe havens amid concerns over a trade war and movements against the euro were fairly muted. Today we will see construction PMI for June, while tomorrow sees the services PMI for the same month. Good luck to England who play Columbia tonight.
