020 7898 0500While Markit’s manufacturing PMI reading for June pointed to the slowest growth in factory activity for four months, the Institute for Supply Management’s Manufacturing PMI rose to 60.2 in June from 58.7 the month before. It is the strongest expansion in the manufacturing sector for four months. Still, Trump’s trade tariffs continue to affect markets around the world, as Wall Street dropped in early trading, while the dollar rallied against a basket of currencies as investors looked for a safe haven.
The US Commerce Secretary, Wilbur Ross, spoke to CNBC and said that market volatility won’t stop Trump shaking up the global trade system. There are widespread fears over Trump’s threat to put tariffs in car imports from Europe. The EU’s threat to retaliate could hurt consumers, businesses and economic growth. It is difficult to see who could possibly benefit from the tariffs, but it is impossible to predict what Trump will do next.
Today we will see factory orders for May, as well as car sales for June. Wednesday is quiet, but on Thursday we will see the employment change figures for June, as well as composite, services and non-manufacturing PMI for the same month. We will also see the minutes from the Federal Open Market Committee meeting, before Friday’s non-farm payrolls and balance of trade figures.
